SHANGHAI, Aug. 17 (SMM) – LME copper fell to USD 5,076/mt at one point Monday and closed at USD 5,115/mt, down by USD 55/mt.
The US dollar index increased, while crude oil price touched a six-year low, weighing down metal prices.
Foreign investment banks were pessimistic about metal prices fearing that China’s economic slowdown will hurt metal demand.
CFTC reported net short positions in COMEX copper for the 10th straight week.
SHFE 1510 copper contract opened at RMB 38,900/mt Monday night, and slipped to RMB 38,830/mt. The most active copper contract then rallied to RMB 39,110/mt and ended at RMB 39,030/mt, down by RMB 170/mt. Positions grew 3,412, and trading volumes were around 125,000 lots.
SHFE 1510 copper contract may trade at RMB 38,700-39,300/mt on August 18. Spot premiums were reported from China’s copper market Monday, but the premiums are unlikely to expand with imported copper keeping flowing in. Spot copper will be quoted between a discount of RMB 20/mt and a premium of RMB 70/mt to SHFE 1509 copper contract.