SHANGHAI, Aug. 24 (SMM) – LME copper tested a low of USD 4,992/mt and ended at USD 5,063/mt last Friday. Shanghai copper will come under selling pressure with the SHFE/LME copper price ratio expanding.
Chinese shares continued to fall last Friday. US stock prices slumped, with the Dow and S&P 500 posting more than 5.8% of falls, the biggest declines since September 2011. Nasdaq plummeted 6.8%.
The Caixin China manufacturing PMI was reported at its lowest since March 2009 during August, fueling concern over the country’s demand.
New York crude oil prices fell below USD 40/mt for the first time since 2009, to USD 39.82/bbl. The US dollar index dropped to only 95, but this failed to lend any support to copper prices.
SHFE 1510 copper contract started at RMB 38,810/mt for night trading last Friday, and fell back to RMB 38,630/mt after rising to RMB 38,950/mt. The most active copper contract closed at RMB 38,830/mt. Positions declined 3,132, and trading volumes were around 145,000 lots.
SHFE 1510 copper contract may trade at RMB 38,600-39,000/mt on August 24. Spot copper will be quoted at discounts of RMB 0-50/mt to SHFE 1509 copper contract.