SHANGHAI, Aug. 15 (SMM) – LME three-month copper dipped to its lowest in about 50 days of USD 6,821/mt Thursday and finished the day at USD 6,827/mt, down USD 58/mt.
The euro zone GDP growth stagnated in the second quarter with Germany’s economy contracting and growth for France stalling.
In the US, last week’s initial jobless claims hit a six-week high, hurting market confidence. Although the bright results reported by large retail firms and expectation that the Ukrainian crisis will unlikely worsen pushed US stocks up, commodity markets remained depressed. These factors, combined with a surge in July copper production reported from China, dragged down the London copper prices.
SHFE 1410 copper contract prices opened at RMB 48,840/mt during the night session Thursday, and dipped to a low of RMB 48,620/mt before closing the session at RMB 48,740/mt, down RMB 290/mt. Traded volumes for the most active SHFE copper contract were about 150,000 lots, and open interest grew by 476 lots.
On August 15, SHFE 1410 copper contract prices are expected to extend losses to RMB 48,300-48,800/mt. In physical market, copper may be offered at discounts of RMB 0-70/mt against SHFE 1408 copper contract prices on the last trading day for the front-month contract.