SHANGHAI, Oct. 10 (SMM) – LME copper prices rose to near USD 6,750/mt on Thursday, but then pulled back to close at USD 6,702/mt, up USD 57/mt.
Trade surplus in Germany fell almost 40% in August due mainly to weaker demand from Russia. The country’s exports declined 5.8% on the month in August, compared with a 4.8% growth in July, pressuring the euro.
In the US, Federal Reserve’s Richard Fisher said interest rate hike may occur around the middle of 2015, the schedule will be subject to economic data. Last week’s initial jobless claims fell to 287,000, dragging the average number for the past four weeks to 287,750, the lowest since February 2006. The encouraging figures allowed the US dollar index to rebound. In addition, concerns that the slow euro zone growth may affect the US economy resulted in a 2% slump in the US stock prices.
The most active SHFE copper contract started at RMB 47,630/mt during the night session Thursday, and soon climbed to RMB 48,090/mt. The prices then met resistance and finish the session at RMB 47,740/mt, up RMB 170/mt. Trading volumes of the most active contract were 190,000 lots, and positions rose by 4,914 lots.
SHFE 1412 copper contract may trade at RMB 47,500-48,000/mt on October 10. In China’s spot markets, copper will be offered at premiums of RMB 20-100/mt against SHFE 1410 copper contract prices.