SHANGHAI, Sept. 10 (SMM) –LME copper retreated earlier gains during European and US trading hours responding to a slowdown in China’s economy and firmer US dollar. The 3-month copper finally edged up USD 4/mt to USD 5,356/mt.
LME copper fell back from highs overnight. SHFE 1511 copper thus started slightly higher at RMB 41,220/mt during Wednesday evening session and then moved lower to RMB 40,840/mt after meeting resistance at moving average. The red metal closed RMB 60/mt higher at RMB 40,880/mt. Positions declined 1,416 to 231,798 with trading volumes around 280,000 lots.
Crude oil prices rolled back early day’s gains yesterday, depressing base metal prices. Despite this, copper prices resisted declines thanks to news of production cut by Glencore and a new round of strikes by Codelco contract workers.
Market attentions will focus on economic data from China on Thursday, including CPI, PPI, M2 supply, etc.
LME copper is predicted to range between USD 5,300-5,380/mt during Asian trading hours. SHFE 1511 copper will fluctuate in RMB 40,500-41,500/mt on Sept. 10. Chinese cargo holders will move goods out stably, allowing spot discounts to persist in market. Hence, spot copper should be offered RMB 20-80/mt lower than SHFE 1509 copper. On the other hand, downstream buyers may purchase as needed.