SHANGHAI, Sept. 17 (SMM) – LME copper moved at highs during European and US trading hours due to a softer dollar and improved sentiment, to close at USD 5,390/mt, up USD 58/mt.
US dollar weakened as a result of unexpected slip in US August CPI, favoring commodity prices. Gold and crude oil prices also rebounded. Moreover, investors still closely watched the upcoming US interest rate meeting.
SHFE 1511 copper opened at RMB 40,940/mt for night trading Wednesday and then dropped to RMB 40,780/mt. But later the contract moved higher to RMB 41,210/mt in response to a weaker dollar and rise in crude oil prices, to end RMB 470/mt higher at RMB 41,110/mt. Positions were down 2,348 to 197,692 with trading volumes around 270,000 lots.
Commodity prices bounced back yesterday answering to a rally in Chinese stock market. And commodity prices extended gains overnight as market still absorbed news of the decrease in crude oil stocks surpassing forecast. Besides, weak inflation data eases the worries about interest rate hike by US. COMEX copper prices posted a rise of 0.53% following an earthquake in Chile Wednesday.
As such, LME copper should moved at highs in USD 5,400-5,450/mt during Asian trading hours. SHFE 1511 copper is expected to hover between RMB 40,800-41,700/mt on Sept. 17 responding to a rally in Chinese stock market. In China’s spot market, a jump in SHFE copper boosts bullish sentiment and hence cargo holders are keen to hold offers firm. Downstream buyers may purchase on need and trading activity will improve slightly. Spot copper will be offered RMB 20-80/mt above SHFE 1510 copper.