SHANGHAI, Sept. 17 (SMM) – LME copper prices rose USD 137/mt to USD 6,960/mt on Tuesday, boosted by news that the People’s Bank of China will inject RMB 100 billion into five biggest banks through thee-month standing lending-facilities. The cash-to-three-month backwardation in LME copper was USD 44/mt, its highest in three months.

In other news, the euro zone and Germany’s economic sentiment was reported weak. But report came that the FOMC will maintain dovish stance, driving US stocks up, with the US dollar index falling below 84. Commodity markets rebounded as a result, with crude oil prices soaring by 2.1%.

SHFE 1411 copper contract prices opened at RMB 48,730/mt for the night session Tuesday, and rose by its daily limit to RMB 50,990/mt, powered by news on easing policies in China and rising LME copper. The red metal then gave back some gains and closed the session at RMB 49,590/mt, up RMB 1,020/mt. Traded volumes for the most active contract increased to 280,000 lots, while positions declined 9,930 lots. Resistance formed near RMB 50,000/mt.

On September 17, SHFE 1411 copper contract prices will be more volatile and are expected to move between RMB 49,000-49,800/mt. In China’s physical market, copper will be quoted at premiums of RMB 120-220/mt against SHFE 1410 copper contract prices.