SHANGHAI, Aug. 11 (SMM) – LME copper once broke above USD 5,300/mt on Monday and closed at USD 5,298/mt, up USD 142/mt, due mainly to report on copper production cuts and a fallback in the US dollar index.
Codelco announced to suspend operation at its Chuquicamata project due to storms in north Chile, and KGHM, the second largest European copper producer, also said power brownouts may result in a decline in its output, helping boost copper prices.
The rally in China’s stock market, a decline in the US dollar index and surging crude oil prices also helped with a rebound in copper.
SHFE 1510 copper contract opened at RMB 38,010/mt Monday night, and climbed to RMB 39,200/mt before finishing the session at RMB 39,020/mt, up RMB 1,170/mt. Positions decreased 8,612, and trading volumes shot up to 340,000 lots. The SHFE/LME copper price ratio expanded to 7.36.
SHFE 1510 copper contract may trade at RMB 38,700-39,200/mt on August 11. Spot copper will be quoted at discounts of RMB 50-130/mt to SHFE 1508 copper contract.