SMM Copper Market Morning Review (2015-6-29)

SHANGHAI, Jun. 29 (SMM) – Base metal prices were dragged down by China’s stock price plunge and concern over Greek debt crisis. LME copper prices surrendered earlier gains to end up USD 33/mt at USD 5,792/mt.

China's central bank announced a targeted cut of reserved requirement ratio (RRR) and a reduction of interest rates last weekend.

SHFE 1509 copper contract opened at RMB 42,050/mt Friday night and tested a low of RMB 41,920/mt. The prices rose at the tail of trading and touched RMB 42,230/mt before ending at RMB 42,200/mt, up RMB 270/mt. SHFE 1509 copper contract positions grew 5,890 and trading volumes were about 76,000 lots.

Growing risk aversion arising from an escalation of Greek debt crisis pushed the dollar and precious metals up early this Monday.

SHFE 1508 copper contract may trade at RMB 41,900-42,400/mt on June 29. Spot copper may be offered at premiums of RMB 230-270/mt to SHFE 1507 copper contract.