SHANGHAI, Aug. 21 (SMM) – LME copper rallied Thursday on buying support and weaker US dollar, and touched a high of USD 5,120/mt before ending at USD 5,090/mt, up USD 85/mt.
The National Association of Realtors announced US pending home sales grew 2% MoM in July to an annualized 5.59 million sets, the highest since February 2007. Later, however, the minutes of FOMC suggested that the Fed was in no hurry to hike interest rate, pushing down the US dollar index.
Volatile currency market in emerging economies and the sharp fall in the dollar stoked risk aversion, driving up gold prices.
SHFE 1510 copper contract gapped higher at RMB 39,020/mt for night trading Thursday, and ended the session at RMB 39,050/mt, with the session high at RMB 39,220/mt and low end price at RMB 38,910/mt. Positions declined 936, and trading volumes were around 180,000 lots.
Emerging economies, especially China, were confronted with downside risk, and any substantial rebound in metal prices is not expected unless Chinese economy shows a sign of stabilizing.
SHFE 1510 copper contract may trade at RMB 38,800-39,400/mt on August 21. Spot copper will be quoted between a discount of RMB 30/mt and a premium of RMB 30/mt to SHFE 1509 copper contract.