SHANGHAI, Oct. 26 (SMM) – LME copper started at USD 5,242/mt last Friday and once shot up to USD 5,319.5/mt thanks to news of China’s interest rate and RRR cut. But later, LME copper moved lower to USD 5,162/mt owing to stronger dollar and closed at USD 5,180/mt. Both trading volumes and positions grew. LME copper inventories fell below 280,000 mt.
SHFE 1512 copper opened at RMB 39,600/mt last Friday night with LME copper falling from highs and drifted lower to RMB 38,800/mt, to end at RMB 39,020/mt, down RMB 470/mt or 1.19%. Positions dropped 7,004 to 226,794 and trading volumes were around 360,850 lots.
The positive effect of China’s interest rate and RRR cut is offset by stronger dollar. And a series of main risky events are going to be released this week, including China’s 5th Plenary Session of 18th CPC Central Committee, and US’s interest rate meeting. LME copper should move in USD 5,150-5,220/mt during Asian trading hours. SHFE 1512 copper will fluctuate between RMB 38,800-39,300/mt on October 26. In China, spot copper should trade between discounts of RMB 50/mt and premiums of RMB 20/mt.