SHANGHAI, Aug. 26 (SMM) – LME copper prices rallied Tuesday on monetary easing in China and hit a high of USD 5,072/mt before ending up USD 106/mt at USD 5,056/mt.
The People’s Bank of China announced to cut interest rate and RRR Tuesday to help stabilize the volatile financial markets, driving up commodities prices.
The US dollar index increased 0.77%, while US crude oil prices climbed 3.1% to USD 44.5/bbl. US shares pulled back following a rebound and European stocks rose across the board.
SHFE 1510 copper contract gapped higher at RMB 39,320/mt Tuesday night, and climbed to RMB 39,600/mt before ending the session RMB 39,540/mt, up RMB 990/mt. Positions decreased 9,710, and trading volumes were around 200,000 lots. SHFE 1511 copper contract shifted to the most traded one.
SHFE 1511 copper contract may trade at RMB 39,200-39,600/mt on August 26. Spot copper will be quoted at discounts of RMB 0-70/mt to SHFE 1509 copper contract.