SHANGHAI, May 22 (SMM) – LME copper prices rallied on Thursday and headed toward USD 6,280/mt before ending up USD 49/mt at USD 6,265/mt.
US data were worse than expected, dragging down the US dollar index. Meanwhile, crude oil prices rebounded more than 3%. US shares also bounced back with S&P 500 hitting new record.
Although the HSBC’s China manufacturing PMI for May increased from April, the below-50-index indicates continued weakness in manufacturing sectors.
SHFE 1507 copper contract prices opened at RMB 45,100/mt for night session Thursday and touched the 20-day moving average at one point. However, the prices then fell back to end at RMB 45,140/mt. Positions decreased 1,286 and trading volumes fell below 80,000 lots.
SHFE 1507 copper contract is expected to trade at RMB 45,000-45,300/mt on May 22. Spot copper may be offered at premiums of RMB 50-100/mt to SHFE 1506 copper contract in Shanghai.