SHANGHAI, Sept. 14(SMM) – LME copper tested support at USD 5,320/mt amid cautious sentiment last Friday and finally ended the day down USD 10/mt at USD 5,382/mt.
Commodity prices were supported by a softer dollar last Friday but investors were still worried about a slowdown in China’s economy and the timing of US Fed’s interest rate hike.
LME copper ended higher than the day’s lowest point last Friday. In response, SHFE 1511 copper started lower at RMB 40,850/mt last Friday evening session and dived to RMB 40,750/mt. Later, the contract bounced back and regained most losses thanks to a growth in LME copper, to end at RMB 41,070/mt, down RMB 60/mt. Positions fell 4,492 to 216,898 with trading volumes around 210,000 lots.
Most data, released last weekend, from China were downbeat with Jan.-Aug. fixed asset investment data below forecast and the previous one. This painted a gloomy picture for China’s Q3 GDP. Goldman Sachs lowered its forecast for crude oil prices, sending crude oil prices down.
Market sentiment stays wary before the US Fed’s meeting on Friday. LME copper should move in USD 5,340-5,400/mt during Asian trading hours. SHFE 1511 copper may range between RMB 40,800-41,300/mt on Sept. 14. With the upcoming delivery date for SHFE 1509 copper, spot copper in China should be offered RMB 0-50/mt above SHFE front-month contract.