SHANGHAI, Apr. 23 (SMM) – LME copper dropped to USD 5,894/mt at one point Wednesday and closed at USD 5,914/mt, down by USD 19/mt. LME cash flipped to a USD 5/mt contango, pressuring copper prices.
Sales of existing homes in the US rose 6.1% in March, the biggest increase in 18 months. Stronger financial reports from large companies and upbeat housing data boosted market confidence, pushing up US shares. Nasdaq closed up for a third straight day and approached the record high.
China continued to report decline in refined copper imports during March.
SHFE 1506 copper contract started lower at RMB 43,210/mt during night session Wednesday, and followed LME copper down after rising to RMB 43,390/mt briefly. The most active copper contract then dipped to RMB 42,960/mt and closed at RMB 43,010/mt, down RMB 240/mt. Positions in the most active contract declined 2,248 and trading volumes were only about 110,000 lots. Prices are expected to test support at RMB 43,000/mt given poor import data and caution before release of China PMI.
SHFE 1506 copper contract may trade at RMB 43,000-43,500/mt on April 22. Spot copper may be offered at premiums of RMB 120-170/mt to SHFE 1505 copper contract in Shanghai.