SHANGHAI, Aug. 19 (SMM) – LME three-month copper moved higher on Monday, but met resistance at USD 6,930/mt before closing at USD 6,895/mt, up USD 22/mt.
China’s new home sales prices were reportedly down for a third straight month in July, indicating the downturn in housing market was still impairing China’s growth. Foreign direct investment also dropped unexpected for the first time in 17 months, as manufacturing companies in Japan, Europe and the US cut spending.
In the US, the NAHB home price index was beat forecast in August. In other news, the Russia-Ukraine tension eased some after Western governments announced to make further efforts to defuse the crisis. As a result, risk aversion abated, driving down crude and gold, but pushing up US stock prices, with Nasdaq closing at a 14-year high.
SHFE 1410 copper contract prices increased after starting Monday’s night session at RMB 49,070/mt, and met resistance at RMB 49,300/mt. The October-delivery copper ended up RMB 90/mt to RMB 49,090/mt. Traded volumes for the most active SHFE copper contract fell to 80,000 lots, and positions rose by 7,312 lots. Increasing long positions will lend some support to copper prices.
On August 18, SHFE 1410 copper contract is expected trade at RMB 48,900-49,300/mt. In physical market, copper may be quoted at premiums of RMB 80-150/mt against SHFE 1409 copper contract prices.