SHANGHAI, Jul. 25 (SMM) – On Thursday, market continued to digest upbeat data from China, and improving economic figures from the US also created impetus for commodity prices. Although the Markit’s preliminary US manufacturing PMI missed forecast in July and June’s new home sales sank to a three-month low, initial jobless claims last week dropped to the lowest since February 2006, allowing the S&P 500 index to hit new high for the 27th time this year.
LME three-month copper hit a high of USD 7,175/mt and closed up 1.7% at USD 7,168/mt.
In other news, world’s largest copper producer Codelco confirmed that it had to cancel some orders and buy copper from physical markets as construction progress at one of its new mines turned out slower than expected.
The most active SHFE copper contract gapped higher at RMB 50,760/mt during Thursday’s night session helped by rallying LME copper, and touched RMB 50,930/mt before ending up RMB 590/mt at RMB 50,880/mt. About 120,000 lots were traded for the most active SHFE copper contract, while holdings rose by 4,234 lots.
On July 25, SHFE 1409 copper contract prices may rise to RMB 50,500-51,000/mt. Spot copper may be offered at discounts of RMB 50-150/mt against SHFE 1408 copper contract prices since oversupply pressures remain.