SMM Copper Market Morning Review (2015-7-7)

SHANGHAI, Jul. 7 (SMM) – LME copper prices slumped on the negative result of Greek referendum and closed down more than 3% at USD 5,567/mt.

CFTC reported an increase in net short positions in the week ending June 30.

SHFE 1509 copper contract dropped after opening at RMB 40,730/mt Monday night and extended losses to touch a low of RMB 40,260/mt before finishing the session at RMB 40,680/mt, down by RMB 540/mt. SHFE 1509 copper contract positions decreased 1,406 and trading volumes were about 240,000 lots.

Plunging crude oil prices and concerns over China’s financial market and debt issue in the euro zone will continue to weigh on copper prices.

SHFE 1509 copper contract may trade at RMB 40,200-40,800/mt on July 7. Spot copper may be offered at premiums of RMB 170-220/mt to SHFE 1507 copper contract.