SHANGHAI, Apr. 29 (SMM) – A weakening in the US dollar continued to support base metals Tuesday. LME copper prices fluctuated upward and finished up USD 31/mt at USD 6,127/mt. However, base metals showed diverged trends and resistance formed at higher levels.
The US Conference Board Consumer Confidence Index was only 95.2 in April, well below forecast. UK’s Q1 GDP only grew 2.4%, also falling short of expectation.
The US dollar index continued to fall before release of minutes from the latest Fed meeting.
SHFE 1507 copper contract started at RMB 43,800/mt during night session Tuesday, and increased to RMB 44,050/mt before pulling back to end at RMB 43,900/mt, up RMB 60/mt. Positions in the most active contract increased 5,280 and trading volumes were about 120,000 lots. The SHFE/LME copper price ratio dropped noticeably. Besides, longs closed positions actively.
SHFE 1507 copper contract may trade at RMB 43,500-44,000/mt on April 29. Spot copper may be offered at premiums of RMB 100-150/mt to SHFE 1505 copper contract in Shanghai.