SHANGHAI, Oct. 14 (SMM) – LME three-month copper hovered near USD 6,700/mt on Monday, but rose significantly at the tail of trading due to slumping US dollar index, finishing the day at USD 6,737/mt.
China’s exports hit a 19-month high in September, beating forecast, and imports rebounded unexpectedly, allowing trade surplus to decline.
President of the Chicago Fed Charles Evans said the biggest risk to US now is premature rate hikes. The US dollar weakened in response. Meanwhile, US shares are rising more slowly, with the S&P 500 d closing down for three weeks in a row and losing 3.14% last week, the largest weekly decline in over one year.
In other news, sources disclosed that Codelco will leave term premiums for 2015’s shipments at USD 112/mt, an indication of strong pressure resulting from growing supply and weakening demand. But the company gave no comments on the report.
The most active SHFE copper contract started at RMB 47,860/mt during Monday’s night session, and closed up RMB 290/mt at RMB 47,850/mt, with resistance at RMB 48,000/mt. Trading volumes of the most active contract fell to 150,000 lots, and positions increased 5,576 lots.
SHFE 1412 copper contract may trade at RMB 47,700-48,200/mt on Tuesday. In China’s spot markets, copper will be offered at discounts of RMB 0-100/mt against SHFE 1410 copper contract prices as cargo holders are eager to sell before the delivery day.