SMM Copper Market Morning Review (2015-10-13)

SHANGHAI, Oct. 13 (SMM) – LME copper opened at USD 5,298/mt overnight and then fell back from high responding to crude oil prices, to end at USD 5,301/mt, edging up USD 1/mt. Positions grew 4,826 but trading volumes fell more than 17,000 lots.

SHFE 1512 copper started at RMB 40,180/mt during Monday evening session and then retreated to the 20-day moving average, tracing LME copper. Then the red metal stabilized around RMB 39,900/mt and closed at RMB 39,910/mt, down by MRB 170/mt or 0.42%. Positions declined 394 to 226,416 and trading volumes were around 140,000 lots.

With a sump in crude oil prices, LME copper will move in USD 5,280-5,330/mt during Asian trading hours. SHFE 1512 copper should range between RMB 39,800-40,300/mt on October 13 and spot discounts of RMB 0-50/mt is expected over SHFE 1510 copper.