SHANGHAI, Jun. 4 (SMM) – LME copper prices hovered around USD 6,000/mt Wednesday and closed down USD 37/mt at USD 6,003/mt.
The European Central Bank governor Draghi said QE is progressing and may help with continued recovery of CPI growth. The euro strengthened as a result, weighing on the US dollar index. However, a plunge in crude oil prices affected base metals prices.
The US job data reported by ADP turned out better than expected, but ISM service PMI missed forecast, the US dollar index fell sharply after a brief rebound and finished down 0.64%. The US Energy Information Administration reported that crude oil inventories were falling more slowly than expected, while markets believe OPEC will decide to keep output unchanged at Friday’s meeting, triggering concern over a glut.
SHFE 1508 copper contract prices started Wednesday’s night session at RMB 43,600/mt and rose to RMB 43,660/mt. The prices then moved lower at the tail of the session and ended at RMB 43,470/mt, down RMB 270/mt. Positions grew 1,982 and trading volumes were about 103,000 lots.
SHFE 1508 copper contract prices are expected to move at RMB 43,400-43,700/mt on June 4. Spot copper may be quoted at premiums of RMB 30-70/mt to SHFE 1506 copper contract in Shanghai.