SHANGHAI, Aug. 7 (SMM) – LME three-month copper fell below USD 7,000/mt Wednesday and closed down 1.2% at USD 6,996/mt. Russia will reportedly retaliate against the US and European countries that announced to impose sanctions on the country. In addition, Germany’s manufacturing orders slumped unexpectedly in June, and the country’s Economy Ministry said concerns over geopolitical crisis might have resulted in the declines in orders, weighing down European shares. The euro tumbled to its lowest since November 2013, pushing up the US dollar index.
SHFE 1410 copper contract prices opened at RMB 49,520/mt at Wednesday’s night session and met resistance at RMB 49,720/mt. The October-delivery contract finished down RMB 350/mt at RMB 49,650/mt. Traded volumes for the most active SHFE copper contract increased to about 150,000 lots, while positions dropped 17,662 lots. Some investors exited the market to stop losses after SHFE copper fell below RMB 49,700-49,800/mt.
On August 7, SHFE 1410 copper contract prices may move between RMB 49,500-50,000/mt. Spot copper are expected to be offered between a discount of RMB 30/mt and a premium of RMB 50/mt against SHFE 1408 copper contract prices.