SHANGHAI, Oct. 28 (SMM) – LME copper prices climbed above USD 6700/mt and touched USD 6,752/mt on Monday before ending up USD 45/mt at USD 6,730/mt.
As global copper prices have fallen to a low last seen in June, investors speculate that the State Reserve Bureau will purchase copper for reserve once prices drop to the levels seen in March and April. That, combined with the report that hedge fund Red Kite Group holds more than half of LME copper stocks, drove up copper prices on Monday. In addition, US economic indicators also turned out positive.
In other news, the International Copper Study Group projects that global copper market will witness deficit in 2014 despite a surplus reported in July.
The most active SHFE copper contract opened at RMB 47,450/mt and closed at RMB 47,310/mt during night session on Monday. Trading volumes of the most active contract were about 110,000 lots, while positions increased 6,354 lots.
SHFE 1501 copper contract may trade at RMB 47,200-47,500/mt on October 28. In China’s physical markets, copper will be offered at discounts of RMB 0-30/mt against SHFE 1411 copper contract prices.