SHANGHAI, Oct. 23 (SMM) – LME three-month copper closed down USD 30/mt at USD 6,633/mt Wednesday as the US dollar continued to strengthen.
European shares moved higher as market continued to price in the news that European Central Bank may start buying corporate bonds in secondary market. The US CPI posted a just 0.1% MoM increase in September, triggering concerns over the slower US recovery.
The most active SHFE copper contract opened at RMB 47,180/mt for Wednesday’s night session, and then dropped below RMB 47,000/mt, testing RMB 46,910/mt before ending at RMB 47,040/mt, down by RMB 70/mt. Trading volumes of the most active contract shrank to 100,000 lots, while positions showed little changes. Market players are now waiting for economic releases from China.
SHFE 1501 copper contract may trade at RMB 46,700-47,200/mt on October 23. In China’s physical markets, oversupply pressure still exists and copper will be offered at premiums of RMB 50-120/mt against SHFE 1411 copper contract prices.