Copper Prices Strengthened amid Falling US Dollar Index

LME copper prices closed at $9,001/mt last evening, up 0.23%. Trading volume was 14,000 lots and open interest stood at 251,000 lots. SHFE 2305 copper contract finished at 69,460 yuan/mt last evening, down 0.34%. Trading volume was 33,000 lots, and open interest stood at 172,000 lots.

On the macro front, the dollar fell to its lowest level against the euro in a week on Thursday as data showed that inflation in Germany eased, boosting the euro. Concerns about the banking sector eased, sending the U.S. dollar index lower.

In terms of fundamentals, the import loss has further expanded and it is expected that the possibility of a large inflow of imported goods flowing into the spot market in the short term will be low, which will affect sellers’ price hikes. The month-end and high copper prices kept downstream buyers cautious in purchasing, and overall trading was lacklustre.