SHANGHAI, Jul. 29 (SMM) – The Chinese yuan strengthened against the dollar on Monday helped by positive data from China, allowing investors to expect rising copper demand in the future. However, the US economic figures turned out bleak, with pending home sales posting its first decline in June. But shares of Family Dollar Stores and Dollar Tree surged on the news about acquisition, leaving US stock prices mixed. LME-three month copper moved sideways and finally closed at USD 7,130/mt.
In other news, Freeport-McMoRan Copper & Gold expects to export 756,000 mt of copper concentrate from Indonesia after it reached an agreement with the country’s government last Friday.
The most active SHFE copper contract started at RMB 50,550/mt during Monday’s night session and finished up RMB 80/mt at RMB 50,620/mt, with a session high at RMB 50,820/mt, and low end at RMB 50,510/mt. Traded volumes for the most active SHFE copper contract fell to merely 100,000 lots, and positions were also down 2,292 lots.
On July 29, SHFE 1409 copper contract may trade between RMB 50,500-50,900/mt. Spot copper may be offered at discounts of RMB 80-200/mt against SHFE 1408 copper contract prices.