SHANGHAI, Apr. 14 (SMM) – LME copper prices fell below USD 6,000/mt on Monday and closed at USD 5,984/mt, down USD 36/mt. LME copper inventories soared 1.1%, triggering concerns over copper consumption.
The US budget deficit expanded October 2014-March 2015 due to rising spending on social security and medical care, to USD 439.5 billion, exceeding forecasts. The US shares fell across the board, and the US dollar index rose above 100 on growing anticipation for interest rate hike.
SHFE 1506 copper contract started at RMB 43,650/mt during night session Monday, and soon dropped to end at RMB 43,360/mt, down by RMB 310/mt. Positions in the most active contract grew 2,126 and trading volumes were less than 100,000 lots. Customs reported China’s copper semis imports remained high in March despite China’s tumbling foreign trade data. The SHFE/LME copper price ratio expanded to 7.25.
SHFE 1506 copper contract prices are expected at RMB 43,000-43,600/mt on April 14. Spot copper may be quoted at premiums of RMB 0-60/mt to SHFE 1504 copper contract.