SHANGHAI, Apr. 2 (SMM) – LME copper prices tested a low of USD 5,952/mt on Wednesday but rallied later to end up USD 16/mt at USD 6,035/mt. Positions in LME copper continued to grow to a new high of 380,000.
US ADP job data fell to 189,000 in March, and ISM manufacturing PMI indicates the slowest manufacturing growth in nearly two years. Meanwhile, the US construction spending dropped at an annualized 0.1% to USD 967.2 billion in February. Automobile sales in the country also slipped, driving down US shares.
However, crude oil prices posted a 5% rebound, boosting metal prices.
SHFE 1506 copper contract opened at RMB 43,120/mt during night session Wednesday, and touched a low of RMB 43,030/mt. Later, the prices rose back to RMB 43,530/mt and ended the session at RMB 43,410/mt, up RMB 30/mt. Positions in the June delivery copper decreased 348, and trading volumes were around 250,000 lots. Resistance formed at the 5 and 10-day moving averages.
SHFE 1506 copper contract prices may move at RMB 43,000-43,600/mt on April 2. Spot copper may be quoted at between a discount of RMB 40/mt and a premium of RMB 20/mt to SHFE 1504 copper contract.