SMM Copper Market Morning Review (2015-10-22)

SHANGHAI, Oct. 22 (SMM) – LME copper opened at USD 5,193/mt overnight and dropped to USD 5,136/mt, to end at USD 5,192.5/mt, down 8.5%.

SHFE 1512 copper started at RMB 38,890/mt on Wednesday night and drifted lower to RMB 38,710/mt with shorts gathering strength. Later, the red metal returned to gains thanks to short covering before ending at RMB 39,200/mt, up RMB 130/mt or 0.33%. Positions decreased 3,492 to 242,992 and trading volumes totaled 215,000 lots.

Major reports were absent yesterday evening but base metals were depressed by Chinese stock declines, firmer dollar and a slip in crude oil prices. However, exit of shorts helped to support copper prices.

LME copper should fluctuate between USD 5,160-5,220/mt during Asian trading hours. SHFE 1512 copper will move between RMB 38,900-39,400/mt on October 22. Spot copper will trade between discounts of RMB 40/mt and premiums of RMB 40/mt over SHFE 1511 copper.