SHANGHAI, Jul. 1 (SMM) – The Greek referendum scheduled for this Sunday added to uncertainty over the euro zone outlook, causing investors to sell the euro. The US dollar index rose as a result. LME copper prices tested a low of USD 5,700/mt and closed at USD 5,762/mt, down by USD 36/mt.
LME reported a 16,450 mt surge in copper stocks Tuesday.
Crude oil climbed about 2% as Iran’s nuclear talk was postponed. But the increase in oil prices may prove unsustainable now that the API crude inventories have grown more than expected and markets hold Iran will finally reach agreement with western countries.
SHFE 1509 copper contract opened at RMB 41,950/mt and dipped to RMB 41,560/mt. Later, the prices were driven up with shorts exiting the market and touched a high of RMB 42,200/mt. The September-delivery copper ended the session at RMB 42,000/mt, down by RMB 210/mt. SHFE 1509 copper contract positions grew 836 and trading volumes were about 200,000 lots.
SHFE 1509 copper contract may trade at RMB 41,500-42,200/mt on July 1. Spot copper may be offered at premiums of RMB 200-260/mt to SHFE 1507 copper contract.
