SHANGHAI, Jun. 11 (SMM) – LME copper prices once climbed to USD 6,080/mt Wednesday but then surrendered the gains to end at USD 6,030/mt, up USD 64/mt.
The yen shot up against the dollar after Bank of Japan Governor Haruhiko Kuroda said the real effective exchange rate shows the Japanese currency is very weak. The lower US dollar index shored up commodity markets.
In addition, the US deficit fell to USD 82.4 billion in May, well below the USD 130 billion a year ago. As a result, the Dow posted its biggest gain in a month.
China’s central bank slashed 2015 GDP growth forecast to 7%, but expected the growth to improve in H2.
S&P cut credit rating for Greece to CCC and warned of a potential Greek default in the next 12 months should the country fail to reach agreement with its creditors.
SHFE 1508 copper contract prices gapped higher at RMB 43,630/mt Wednesday night and fell back after rising to RMB 43,760/mt. The prices fell to RMB 43,470/mt before ending at RMB 43,620/mt, up RMB 250/mt. Positions fell by 2,676 and trading volumes were still below100,000 lots.
SHFE 1508 copper contract may trade at RMB 43,500-43,900/mt on June 11. Spot copper premiums should remain at RMB 50-90/mt.