SHANGHAI, Jun. 5 (SMM) – LME copper prices fluctuated down to hit a low of USD 5,906/mt Thursday and ended at USD 5,920/mt, falling by USD 83/mt.
The International Monetary Fund lowered forecast for US growth this year and called for a delay of Fed’s interest rate hike to H1 2016, pushing down US shares.
US initial jobless claims for the week ending May 30 dropped 8,000 to 276,000, near a 15-year low. The initial jobless claims in past four weeks averaged 274,750, also near a 15-year low. The upbeat job data eased risks aversion, driving gold prices below USD 1,180/oz.
OPEC will hold a meeting today and markets now expect it to leave crude oil output little changed. New York crude prices fell 2.33% to USD 58.28/bbl. Brent crude closed down 2.21% at USD 62.39/bbl.
SHFE 1508 copper contract prices opened lower at RMB 43,310/mt Thursday night and followed LME copper down to RMB 42,850/mt before ending at RMB 42,990/mt. Positions grew 3,170 and trading volumes climbed to about 180,000 lots.
Base metals prices will be weighed down by falling precious metals, weak Chinese demand and dim economic outlook for major economies. SHFE 1508 copper contract prices are expected to move at RMB 42,800-43,200/mt on June 5. Spot copper may be quoted at premiums of RMB 50-100/mt to SHFE 1506 copper contract in Shanghai.
