SHANGHAI, Jun. 30 (SMM) – Last week, the Conference Board said US consumer confidence index rose more than expected in June, but Q1 GDP declined significantly, fueling expectations that the Fed may hike the interest rate soon. The US dollar index fell last Friday to nearly 80 as a result. LME three-month copper hit a high of USD 6,983/mt and pulled back later as investors booked profits. The prices ended at USD 6,933/mt. The ratio of canceled warehouse warrants dropped to 19%, and the cash-to-three-month backwardation stabilized above USD 20/mt. As such, downward room for LME copper stocks will be limited.
The September-delivery copper on SHFE opened at RMB 49,580/mt during the night trading last Friday, and closed at RMB 49,530/mt, with resistance at RMB 49,670/mt and support at RMB 49,450/mt. Traded volumes for he most active SHFE copper contract fell to about 80,000 lots, while positions rose by 5,956 lots.
On June 30, SHFE 1409 copper contract prices are expected to move between RMB 49,300-49,800/mt. Spot premiums in China’s copper market may rise to RMB 200-380/mt with cargo holders quoting high.