SHANGHAI, Aug. 4 (SMM) – The ISM manufacturing index for July was reported positive last Friday, but other data from the US, including the July employment in private sectors, nonfarm payroll data, Markit’s US manufacturing PMI, and the University of Michigan consumer confidence index, as well as construction spending all missed forecasts. In addition, concerns over the Argentina default depressed the market. In response, the US stock prices tumbled, with the S&P 500 posting its biggest weekly fall since 2012. Caution again dominated the market, and some shorts entered sold at highs. LME copper tested a low of USD 7,060/mt, but rose slightly later as poor data dragged down the US dollar index. LME copper finished the day down USD 27/mt at USD 7,077/mt.

SHFE 1410 copper contract prices opened at RMB 50,410/mt during Friday’s night session influenced by weak LME copper. The October delivery copper met resistance at RMB 50,500/mt and closed RMB 180/mt at RMB 50,250/mt. Traded volumes for the most active SHFE copper contract remained at about 70,000 lots, while positions continued to rise by 2,836 lots.

On August 4, SHFE 1410 copper contract should trade at RMB 50,000-50,400/mt. Spot copper may be quoted between a discount of RMB 80/mt and a premium of RMB 40/mt against SHFE 1408 copper contract prices.