SHANGHAI, Apr. 17 (SMM) – LME copper prices rallied with crude oil extending gains Thursday but the increase was blocked at USD 6,100/mt, with the red metal ending at USD 6,087/mt, up USD 126/mt. The cash-to-three-month backwardation in LME copper has narrowed to USD 8/mt.
The US initial jobless claims grew 12,000 last week, to a six week high, and March’s building permits were reported down 5.7% from February. But housing starts posted a rebound following February’s sharp decline to an annualized 926,000, and the Philly Fed manufacturing index climbed to 7.5 in April. Investors were pondering the mixed data, leaving a slight fall in US stock market.
New York crude oil rose further to hit the highest so far this year.
SHFE 1506 copper contract gapped higher at RMB 43,780/mt during night session Thursday, and trended up but failed to break through RMB 44,000/mt. The prices ended at RMB 43,760/mt, up RMB 620/mt. Positions in the most active contract declined 1,552 and trading volumes were around 150,000 lots. Despite the short-covering last night, long positions did not rise significantly, preventing prices from rising above RMB 44,000/mt.
SHFE 1506 copper contract prices are expected at RMB 43,300-44,000/mt on April 17. Spot copper may be offered at premiums of RMB 70-130/mt to SHFE 1505 copper contract in Shanghai.
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