SHANGHAI, Sept. 22 (SMM) – Overnight, LME copper initially was supported by China’s upbeat copper import data but later stronger dollar weighed down LME copper prices. As such, LME copper finally closed flat at USD 5,254/mt.
China’s refined copper imports grew 12% to 262,691 mt in August, easing concerns that downturn in Chinese economy will slow China’s demand for copper.
SHFE 1511 copper started at RMB 40,430/mt for night trading Monday and edged up to RMB 40,480/mt. Later, the red metal dived to RMB 40,240/mt after meeting resistance at moving averages, to end at RMB 40,270/mt, up by RMB 120/mt. Positions grew 1,792 with trading volumes around 160,000 lots.
The 12% rise in China’s refined copper imports in August and 20% growth in imported copper concentrate improve market sentiment. But meanwhile, markets expect US Fed to raise interest rate this year, pushing up US dollar to 96. This puts a brake on the increase in base metal prices.
LME copper should move in USD 5,220-5,270/mt during Asian trading hours. SHFE 1511 copper will range between RMB 40,050-40,550/mt on Sept. 22. In China’s spot market, cargo holders will be eager to sell, depressing spot premiums. Thus, spot copper should trade between discounts of RMB 20/mt and premiums of RMB 30/mt.