SHANGHAI, Sept. 2 (SMM) – LME copper drifted lower because of China’s poor economic figures after starting Tuesday trading session at USD 5,127/mt. LME copper finally ended the day at a low of USD 5,068/mt. Both positions and trading volumes saw a sharp decrease, fueling risk aversion.
Chinese yuan has gained for 5 consecutive days after slumping on Aug. 11, easing expectation for further depreciation in yuan. But concerns over China’s economy slowdown and volatile crude oil prices plagued investors again.
On Tuesday night, SHFE 1511 copper opened at RMB 39,020/mt and then advanced to RMB 39,230/mt. Nonetheless, the price fell back later in response to slipping crude oil prices and closed the session at RMB 39,000/mt, sliding RMB 150/mt or 0.38%. Positions were up 3,314 with trading volumes totaling 111,000 lots.
Copper prices should stay weak amid poor data from China and volatile crude oil prices. Investors will exit market to seek safety before China’s Sept. 3-5 holiday for Beijing’s parade to celebrate the World War II victory. As such, LME copper is predicted to range between USD 5,030-5,080/mt on Sept. 2, SHFE 1511 copper will move between RMB 38,900-39,300/mt and spot copper may be offered at discounts of RMB 20-40/mt.