SHANGHAI, Jun. 26 (SMM) – The US durable goods orders slipped unexpected in May, the first decline in four months, which may indicate that the US economy recovered slower than expected. The disappointing data, combined with profit-taking and escalating conflict in Iraq, weighed down stock markets. European shares dropped 1.1%. However, as the US dollar index fell in the wake of the weak economic indicators and the upper house of Russia's parliament voted to revoke a resolution approving military intervention in Ukraine, LME three-month copper rose on Wednesday and close at USD 6,922/mt, up USD 45/mt.
The September-delivery copper on SHFE opened at RMB 48,950/mt for Wednesday’s night trading, and touched a high of USD 49,550/mt before ending at RMB 49,550/mt, up RMB 440/mt. Traded volumes for the most active SHFE copper contract increased to 150,000 lots, while positions soared by 15,842 lots.
On June 26, SHFE 1409 copper contract prices are expected to move between RMB 49,300-49,800/mt. Spot copper may be quoted at premiums of RMB 100-300/mt against SHFE 1407 copper contract prices, as ample supply and high prices may cause downstream buyers to hold back.