SHANGHAI, Jul. 22 (SMM) – On Monday, China’s latest production data reignited concerns over China’s housing market and the sizable metal stocks. LME three-month copper moved around a three-week low and tested a low of USD 6,968/mt. In addition, the conflict between Israel and Palestine has caused hundreds to die, while the crashed Malaysia Airlines passenger jet may prompt the EU to impose further sanctions on Russia.
In other news, the Chicago Fed national activity index was reported down and below forecast in June, fueling risk aversion in the market and pushing down US stock prices. However, investors turned to gold and crude oil due to the escalating geopolitical crises, with gold prices rallying and crude oil posting a 1.4% rise. Later, LME copper prices followed LME aluminum and zinc up and closed at USD 7,029/mt.
The most active SHFE copper contract opened at RMB 49,670/mt during Monday’s night session and finished the session up RMB 380/mt at RMB 49,800/mt. Traded volumes for the most active SHFE copper contract fell to about 140,000 lots, while positions rose by another 6,026 lots.
On July 22, SHFE 1409 copper contract may trade at RMB 49,400-49,900/mt. Spot copper may be offered at discounts of RMB 0-100/mt against SHFE 1408 copper contract prices.