SHANGHAI, Aug. 25 (SMM) – LME copper prices once fell to USD 4,855/mt Monday and closed at USD 4,950/mt. The market flipped into a backwardation.
Chinese shares posted an 8.5% plunge on Monday, the biggest single-day loss since February 2007, erasing all the gains this year. European and US stock market also suffered selling pressure. The stock market slump weighed down commodities prices.
The US dollar index fell as the Fed holds that China’s economic issue may affect US economy. Crude oil prices tumbled 5%.
SHFE 1510 copper contract opened lower at RMB 37,980/mt Monday night, but climbed soon after finding support at to RMB 37,870/mt, to finish the session at RMB 38,680/mt, up RMB 350/mt. Positions increased 350, and trading volumes were around 370,000 lots.
SHFE 1510 copper contract may trade at RMB 38,300-39,000/mt on August 25. Spot copper will be quoted between a discount of RMB 50/mt and a premium of RMB 20/mt to SHFE 1509 copper contract.