SHANGHAI, Dec. 16 (SMM) – LME copper fell below USD 6,400/mt on Monday and closed down USD 120/mt at USD 6,370/mt.
Crude oil continued to decline to near USD 55/bbl. Besides, Russia's ruble weakened 13% against the dollar, the largest drop in a single day since 1999. The country’s central bank raised its key interest rate to 17% from 10.5% to stem the slump of the ruble. The resultant panic caused European and US shares to fall across the board. That, combined with strong caution before China’s economic releases and the Fed’s policy meeting, dragged commodity prices down.
The most active SHFE copper contract opened at RMB 46,710/mt for the night session on Monday and fell all the way to RMB 46,000/mt before ending down RMB 440/mt at RMB 46,100/mt, giving back all gains in the previous trading day. Positions of the February-delivery copper dropped 1,418 to 130,000.
SHFE 1502 copper contract is expected to trade at RMB 45,800-46,500/mt on December 16. Physical copper will be offered at premiums of RMB 150-250/mt to SHFE 1501 copper contract.