SHANGHAI, Jul. 6 (SMM) – LME copper prices fell by USD 37/mt last Friday to USD 5,751/mt as China’s stock plunge fueled market concern and investors were cautious before the Greek referendum. LME copper inventories increased last week, triggering concern over a glut in the market.
The US dollar index increased while crude oil prices extended losses.
SHFE 1509 copper contract dropped after opening at RMB 42,300/mt Friday night and touched a low of RMB 41,920/mt. The September delivery copper closed the session at RMB 42,050/mt, down by RMB 260/mt. SHFE 1509 copper contract positions increased 8,078 and trading volumes were about 110,000 lots. SHFE copper prices still outperformed LME copper as copper supply in China’s spot market was relatively tight.
Chinese stock market will still be eyed today with Chinese government rolling out a series of policies.
SHFE 1509 copper contract may trade at RMB 41,800-42,100/mt on July 6. Spot copper may be offered at premiums of RMB 200-250/mt to SHFE 1507 copper contract.