SHANGHAI, Aug. 19 (SMM) – LME copper prices once fell below USD 5,000/mt to touch USD 4,983/mt on Tuesday, dragged by growing concern over China’s metal demand and a 6% slump in China’s stock market. LME copper closed the day at USD 5,020/mt, losing USD 95/mt.
Both LME and SHFE reported continued growth in copper inventories, weighing down copper prices.
Some Chinese copper mines cut production or closed in response to the depressed copper prices, while smelters reduced output to bolster prices. Many investors still hope a turnaround in copper market in the peak months of September and October.
SHFE 1510 copper contract started lower at RMB 38,700/mt Tuesday night, and dipped to RMB 38,140/mt before rising back to end at RMB 38,570/mt, down by RMB 400/mt. Positions were slashed 1,032, and trading volumes were around 284,000 lots.
SHFE 1510 copper contract may trade at RMB 38,000-38,700/mt on August 19. Spot copper will be quoted between a discount of RMB 30/mt and a premium of RMB 30/mt to SHFE 1509 copper contract.