SHANGHAI, Sept. 8 (SMM) – LME copper once tested resistance at USD 5,200/mt on Monday in response to news of copper production cut by Glencore. But later LME copper fell back due to exit of longs, to close up USD 27/mt at USD 5,135/mt.
Glencore, one of the world’s largest commodity trading and mining companies, announced a plan to shut down its copper mines in Africa to 2017, including Katanga and Mopani. Then, 400,000 mt of copper production will be cut.
LME copper slid from highs overnight and this allowed SHFE copper to open higher but move at lows. SHFE 1511 copper started at RMB 39,520/mt for night trading Monday but then suffered selling pressures to drop slightly before ending at RMB 39,340/mt, up by RMB 80/mt or 0.2%. Positions increased 3,762 to 217,640 and trading volumes were less than 100,000 lots.
Tuesday will see China’s latest trade balance and import and export data. And attention should still be paid to Chinese stock market. LME copper is expected to move in USD 5,120-5,200/mt during Asian trading hours. SHFE 1511 copper suffers pressure and should range between RMB 39,200-39,600/mt on Sept. 8. Chinese spot copper will trade RMB 20-60/mt below SHFE 1509 copper.