SMM Copper Market Morning Review (2015-10-28)

SHANGHAI, Oct. 28 (SMM) – LME copper slipped to USD 5,162/mt after starting at USD 5,181/mt overnight. But later, LME copper rebounded to USD 5,238/mt, tracing Chinese stocks, and closed up USD 19.5/mt at USD 5,207.5/mt. Trading volumes and positions stayed steadily. LME copper inventories fell 3,875 mt to 274,075 mt.

Chinese shares finished Tuesday with gains, bolstering market. US dollar index fell back due to poor reading of US economic figures but later the index regained losses. Crude oil prices continued to slide, boding ill for base metals.

SHFE 1512 copper opened at RMB 39,300/mt for night trading Tuesday and closed up RMB 100/mt 0.26% or at RMB 39,190/mt with the session-high at RMB 39,340/mt and the session-low at RMB 39,160/mt. Positions decreased 4,284 to 216,966 and trading volumes were around 140,000 lots.

Markets still stay wary and wait for the closure of the 5th Plenary Session of the 18th Central Committee of the CPC and US Fed’s interest rate meeting. LME copper will move in USD 5,180-5,230/mt during Asian trading hours. SHFE 1512 copper should range between RMB 38,900-39,300/mt on October 28. On the last several trading days in October, spot discounts of RMB 0-60/mt are expected against SHFE 1511 copper.