SHANGHAI, Sept. 1 (SMM) – SHFE 1511 opened lower at RMB 39,020/mt during Monday evening session and then tested a low of RMB 38,880/mt because of worries about China’s demand and rising hope for US Fed’s interest rate hike. However, the red metal later drifted higher to RMB 39,480/mt in response to a sharp rally in crude oil prices and finally ended at RMB 39,440/mt, up by RMB 160/mt or 0.41%. Positions decreased 1,710 and trading volumes were around 126,000 lots.
China’s Caixin manufacturing PMI for August should be closed eyed on Tuesday.LME copper is expected to move between USD 5,080-5,150/mt during Asian trading hours. SHFE 1511 copper should move strongly between RMB 39,000-39,500/mt on Sep. 1. In China, market sentiment will pick up slightly heading into Sept. but cash still tightens for investors. Thus, spot copper will trade at discounts of RMB 20-60/mt against SHFE 1509 copper contract.