SHANGHAI, Aug. 1 (SMM) – Caution grew in the market Thursday on downbeat US data and stronger US dollar. The US ISM manufacturing index fell from June’s 62.6 to 52.6 in July, well below forecast. Meanwhile, the latest initial jobless claims rose by 23,000, but the average in the past four weeks sank to an 8-year low of 297,250. The economic figures disappointed investors. Besides, market players were unwilling to act before release of China’s official manufacturing PMI and US July nonfarm payrolls. That, combined with concerns over potential butterfly effect of the Argentina default, pushed US stocks down nearly 2%, exerting a drag on base metal markets. LME three-month copper dipped to a low of USD 7,089/mt and closed at USD 7,103/mt, down USD 27/mt.
SHFE 1410 copper contract prices opened at RMB 50,580/mt during Thursday’s night session and tested a low of RMB 50,320/mt before closing down RMB 90/mt at RMB 50,320/mt. Traded volumes for the most active SHFE copper contract fell to about 70,000 lots, while positions increased 6,800 lots.
On the first trading day of August, SHFE 1410 copper contract should trade at RMB 50,200-50,700/mt. Spot copper may be offered between a discount of RMB 30/mt and a premium of RMB 50 against SHFE 1408 copper contract prices.