SHANGHAI, Aug. 12 (SMM) – Chinese yuan devaluation triggered sell-offs on commodities on Tuesday evening. US dollar initially grew but later fell back. US crude oil futures prices slumped to a six-year low. API crude oil stocks dropped at a slower pace. Copper inventories continued to increase. Those factors combined to depress copper prices.
LME copper thus hit another low of USD 5,109/mt and finally ended down USD 151/mt at USD 5,148/mt.
SHFE copper opened lower at RMB 39,220/mt for night trading Tuesday and finally closed at RMB 38,810/mt, down by RMB 70/mt, off 0.18%. Trading volumes were 359,000 lots and positions declined 3,372. SHFE/LME copper price ratio expanded further.
SHFE 1510 copper should range between RMB 38,300-38,900/mt Aug. 12. Spot lead is predicted to settle at discounts of RMB 50-120/mt.