SHANGHAI, Apr. 30 (SMM) – LME copper prices drifted higher during European hours Wednesday but met resistance at USD 6,150/mt to end at USD 6,133/mt, up USD 7/mt.
The US Department of Commerce said the country’s economy barely grew in the first quarter. Adverse weather hurt consumer spending and energy companies cut expenditure due to slumping oil prices. Besides, labor dispute along the western coast and a stronger US dollar and dragged down US growth. The minutes from FOMC’s latest meeting did not rule out the possibility of a rate hike in June.
New York crude oil climbed 2.7% to a new high so far this year.
SHFE 1507 copper contract started at RMB 43,770/mt during night session Wednesday, and once retreated to RMB 43,950/mt. The prices then moved higher and touched RMB 44,230/mt and ended the session at RMB 44,100/mt, up RMB 270/mt. Positions in the most active contract increased 3,716 and trading volumes were about 160,000 lots.
SHFE 1507 copper contract may trade at RMB 43,600-44,100/mt on April 30. Spot copper may be offered at premiums of RMB 70-120/mt to SHFE 1505 copper contract in Shanghai.