SHANGHAI, Jul. 18 (SMM) – On July 17, a Malaysian airliner crashed in Ukraine. It was reported the crash was caused by a surface-to-air missile near Ukraine's border with Russia, fueling market concerns. In response, the Down fell by 0.94% and European shares posted a 0.9% decline. Gold prices rallied 1.3%. Crude oil surged 2% due to expectation of falling inventories in the US and tension between Ukraine and Russia which aroused worries about oil supply. Meanwhile, the US and EU announced a new round of sanctions against Russia. The US housing starts were reported down in June, but the initial jobless claims last week fell more than expected. LME copper touched a low of USD 7,030/mt, up USD 8/mt.
In China, Shanxi-based Huatong Road & Bridge Group said it was not sure whether it would be able to pay interest or principal on a one-year bond set to mature next Wednesday.
The most active SHFE copper contract opened at RMB 50,080/mt during Thursday’s night session and closed down RMB 90/mt at RMB 50,040/mt after touching a low of RMB 49,910/mt. Traded volumes for the most active SHFE copper contract fell to about 130,000 lots, while positions rose by 5,770 lots.
On July 18, SHFE 1409 copper contract prices are expected to move at RMB 49,800-50,300/mt. Spot copper may be offered at premiums of RMB 20-80/mt against SHFE 1408 copper contract prices.