SHANGHAI, Jul. 14 (SMM) – Last Friday, markets were mainly influenced by falling copper imports in China and stronger manufacturing data for China and the US. Concerns over disruption of crude oil supply from Iraq eased, and crude oil output from OPEC members was stable, driving crude oil prices down by 2% to a two-month low last Friday. This exerted a drag on LME copper prices, with the three-month copper testing a low of USD 7,111/mt. Later, the Wells Fargo released financial reports, but market responded mildly, as investors were still pondering comments from Fed officials on interest rate hike. US stocks rebounded slightly, while the US dollar index also rose. LME three-month copper finally closed at USD 7,160/mt, standing above the 5 and 10-day moving averages.
The most active SHFE copper contract increased after opening at RMB 50,810/mt during Friday’s night session. The prices then touched RMB 50,100/mt before ending the session at RMB 50,970/mt, rising RMB 210/mt. Traded volumes for the most active SHFE copper contract were stable at 210,000 lots, while positions rose by 6,920 lots.
On July 14, SHFE 1409 copper contract prices are expected to move between RMB 50,700-51,200/mt. Spot copper may be offered between a discount of RMB 50/mt and a premium of RMB 50/mt against SHFE 1407 copper contract prices.