SHANGHAI, May 25 (SMM) – LME copper prices ended at USD 6,182/mt last Friday after touching a low of USD 6,143/mt due to a rally in the US dollar index.
The International Copper Study Group reported global copper market was in a 122,000 mt surplus in February, compared with an oversupply of 31,000 mt in January. The ICSG said the 3% supply growth and 3.5% fall in demand resulted in a surplus in copper market, and expected that a 364,000 mt surplus in global copper market this year.
In other news, China’s imports of unwrought copper and copper alloy were 380,000 mt in April, and January-April imports dropped 14.7% YoY to 1.35 million mt, kindling concerns over China’s copper demand.
In the US, the core CI was reported up in April.
SHFE 1507 copper contract prices gapped lower at RMB 44,600/mt for night session last Friday and vacillated at RMB 44,520/mt. The prices increased slightly later and ended the session at RMB 44,720/mt. Positions decreased 7,398 and trading volumes were less than 90,000 lots.
LME will be closed today. SHFE 1507 copper contract is expected to trade at RMB 44,400-44,800/mt on May 25. Spot copper may be offered at premiums of RMB 30-100/mt to SHFE 1506 copper contract in Shanghai.