SHANGHAI, May 13 (SMM) – Some Chinese stocks declined Tuesday due to poor financial reports, and US shares also edged down. However, the OPEC raised global crude demand growth forecast, driving US crude prices up 2.5%. LME copper prices rallied to USD 6,459/mt at one point and closed at USD 6,421/mt, up USD 41/mt. Cancelled warrant ratio of copper from LME-approved warehouses surged to 31.81%, the highest since May 2014.

SHFE 1507 copper contract prices opened Tuesday’s night trading RMB 300/mt higher at RMB 46,070/mt, but then retreated to RMB 45,900/mt after hitting RMB 46,140/mt. The July-delivery copper finished the session at RMB 45,990/mt, up RMB 250/mt. Positions grew 4,776 and trading volumes were about 110,000 lots. A weaker dollar against the euro and increased crude prices helped with a rebound in base metals, but resistance remains strong at RMB 46,000/mt for SHFE copper.

SHFE 1507 copper contract is expected to trade at RMB 45,900-46,200/mt on May 13. Spot copper may be offered at premiums of RMB 0-80/mt to SHFE 1505 copper contract in Shanghai.