SHANGHAI, Jun. 3 (SMM) – LME copper prices lurched higher to USD 6,255/mt after the US dollar index fell to 95.83 Tuesday, but then met resistance at the 60-day moving average to end at USD 6,040/mt, up USD 38/mt.
The US dollar index fell significantly as the factory orders were reported weak and the euro strengthened on an easing of concern over Greek debt issue and upbeat euro zone consumer confidence index. The euro soared more than 2% and the US dollar index dropped 1.55%. However, China’s weak manufacturing data blocked any increase in base metal prices. The US crude oil and gasoline inventories exceeded forecast, which may bode ill for crude prices.
SHFE 1508 copper contract prices started Tuesday’s night session at RMB 43,730/mt and climbed to RMB 43,870/mt before meeting resistance. The prices then retreated to RMB 43,680/mt and finished the session at RMB 43,740/mt, down RMB 130/mt. Positions declined 1,656 and trading volumes were about 100,000 lots.
SHFE 1508 copper contract prices are expected to move at RMB 43,400-43,900/mt on June 3. Spot copper may be quoted at premiums of RMB 30-70/mt to SHFE 1506 copper contract in Shanghai.