SHANGHAI, May 21 (SMM) – LME copper dipped to as low as USD 6,194/mt and closed at USD 6,216/mt, up USD 14/mt.
Chances of a rate hike in June appear slim after the publication of minutes from the last Fed interest-rate meeting. Thus, the pressure from the US dollar index on base metals may recede.
EIA reported that crude oil inventories dropped more than expectation, allowing crude prices to stabilize. The HSBC’s China manufacturing PMI for May will be eyed today.
SHFE 1507 copper contract prices gapped lower at RMB 44,820/mt for night session Wednesday, and fell to RMB 44,700/mt before closing the session at RMB 44,820/mt, down by RMB 130/mt, with the session high at only RMB 44,990/mt. Positions decreased 1,442 and trading volumes were less than 90,000 lots.
SHFE 1507 copper contract is expected to trade at RMB 44,500-45,000/mt on May 20. Spot copper may be offered at premiums of RMB 70-120/mt to SHFE 1506 copper contract in Shanghai.