SHANGHAI, Nov. 11 (SMM) – LME copper started Asian trading hours at USD 4,956/mt and then headed for losses due to China’s poor CPI and PPI data. During European and US trading hours, LME copper sank to USD 4,904.5/mt and closed at USD 4,935/mt with a loss of USD 24/mt.
US dollar got a boost from upbeat technical indicators on Tuesday. Bets of US Fed’s rate hike are raised further, but investors should stay wary as the rate hike may be delayed by global economy slowdown. Crude oil prices extended losses for five days in a row, hurt by a surge in API crude oil inventories. However, IEA expects crude oil prices declines will be curbed by reducing investment in crude oil industry.
SHFE 1601 copper opened lower at RMB 37,500/mt during Tuesday night session with falling LME copper and lurched down to RMB 37,140/mt. But later the red metal returned to RMB 37,320/mt before ending at RMB 37,430/mt, falling RMB 30/mt or 0.08%. Positions were up 4,620 to 316,966 with trading volumes around 330,000 lots.
China’s weak PPI and CPI data still point towards rising deflationary pressure. And investors anxiously await another batch of Chinese data, including wholesale data for October. LME copper will move in USD 4,910-4,950/mt during Asian trading hours. SHFE 1601 copper should range between RMB 37,200-37,700/mt on Nov. 11. In China’s spot market, sellers hold price offers firm and spot premiums of RMB 20-80/mt are expected over SHFE 1511 copper.
