SHFE Copper hits 3-week low; China Copper Scrap prices remain flat

CHINA May 26 2015 11:35 AM

SHANGHAI (Scrap Register): Chinese copper scrap prices stayed stable on Scrap Register Price Index as on Monday, while copper futures prices at Shanghai Futures Exchange slipped to its lowest level in more than three weeks.

According to the Scrap Register Price Index, the major Chinese copper scrap commodities like bare bright (cu >99%), copper scrap, no. 1 copper (cu 96-98%) and no. 2 copper (cu 94-96%) remained flat on Monday.

The most traded July copper contract on the Shanghai Futures Exchange slipped by 1% to 44,720 yuan ($7,212) a ton. It found support at the 200 day moving average of 44,540 yuan but a break of that could spur further technical sales.

Expectations of higher borrowing rates going forward is considered bearish for metals, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Meanwhile, concerns over the prospects of a Greek default continued to dominate market sentiment ahead of a critical June 5 deadline for Athens to reach a deal with its creditors.

Greece is scrambling to reach an agreement with its international lenders over economic reforms they say must be implemented before the final €7.2 billion tranche of the country's €240 billion bailout is released.

(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)