LME Copper to See Range-Bound Trading (2017-6-26)

Peru’s Ministry of Energy and Mines (MINEM) reported July molybdenum output of 3,606.8 tonnes, up 15.0% YoY. Jan–Jul output totaled 22,384.0 tonnes, down 1.8%. Sociedad Minera Cerro Verde produced 1,012.2 tonnes, up 30.3%; Anglo American Quellaveco produced 458.1 tonnes, up 23.3%; and Minera Las Bambas produced 336.7 tonnes, up 16.3%. Southern Peru Copper Corporation’s output fell 1.6% to 1,214.7 tonnes. Gains at Cerro Verde, Quellaveco and Las Bambas drove the monthly rebound and narrowed the cumulative supply deficit.

SMM Morning Meeting Summary: Overnight, LME copper opened at $14,782.5/mt, initially drifted higher to touch $14,799/mt, then the price center drifted lower to $14,728/mt, before drifting higher again to close at $14,783/mt, up 0.81%, with trading volume of 20,500 lots and open interest of 264,000 lots, down 3,223 lots from the previous trading day, reflecting short covering. Overnight, the most-traded SHFE copper 2610 contract opened and touched a high of 111,840 yuan/mt, then drifted lower to 111,490 yuan/mt, and consolidated before closing at 111,610 yuan/mt, up 0.35%, with trading volume of 22,600 lots and open interest of 142,300 lots, down 4,459 lots from the previous trading day, reflecting short covering.