SHANGHAI, Oct. 29 (SMM) – LME copper opened at USD 5,205/mt overnight and once dived to USD 5,134.5/mt, to end at USD 5,190/mt with a loss of USD 17.5/mt. Trading volumes posted modest rise but positions fell. LME copper inventories extended losses.
Inventories of crude oil, gasoline and refined oil all fell short of forecast last week, supporting crude oil prices. US Fed left interest rate unchanged at 0-0.25% but will decide whether to raise interest rate on its December policy meeting. The Fed also expressed that economy growth is moderate but concerns over inflation still exist, which denies the saying that global situation will curb US economy growth, allowing US dollar to move at highs.
SHFE 1601 copper shifted to the most active contract on Wednesday night and started at RMB 38,700/mt. The contract drifted lower to RMB 38,520/mt but later moved higher to RMB 39,230/mt, to close at RMB 39,130/mt, up by RMB 140/mt or 0.36%. Positions decreased near 20,000 for SHFE 1512 copper.
On the back of mixed news, LME copper will hover between USD 5,170-5,220/mt during Asian trading hours. SHFE 1601 copper should move between RMB 38,600-39,100/mt on October 29. Spot discounts of RMB 30-60/mt are expected against SHFE 1511 copper.