SHANGHAI, Oct. 24 (SMM) – LME three-month copper closed up USD 37/mt at USD 6,670/mt Thursday aided by positive economic reports.
The preliminary Euro zone manufacturing PMI for October rose to 50.7 after final German PMI for September rose unexpectedly from 49.9 to 51.8. However, market remained cautious as the new orders index continued to slip. France, the second largest economy in the euro zone, saw its flash manufacturing PMI down to 47.3, and prices for products of its local enterprises fell at the fastest pace in five years.
In the US, both MoM and YoY growth of the FHFA home price index accelerated, indicating continued recovery in the country’s housing market. The initial jobless claims averaged 281,000 in the past four weeks, the lowest since May 2000, thanks to improving economy. The flash Markit’s US manufacturing PMI dropped to 56.2 in October but held relatively high. These upbeat reports, combined with bright results reported by listed companies, allowed the European and US shares to rebound.
The most active SHFE copper contract opened at RMB 47,230/mt for Thursday’s night session, and moved in a narrow range before closing at RMB 47,260/mt, up RMB 210/mt. Trading volumes of the most active contract shrank to 90,000 lots, while positions rose by 11,868 lots.
SHFE 1501 copper contract may trade at RMB 46,900-47,300/mt on October 24. In China’s physical markets, copper will be offered at premiums of RMB 20-100/mt against SHFE 1411 copper contract prices.