Copper Futures Prices Went Down, US Inflation Data Fell Short Of Market Expectations

LME copper prices closed at $8,484/mt last evening, down 1.52%. Trading volume was 20,000 lots and open interest stood at 253,000 lots. The most active SHFE 2306 copper contract finished at 66,550 yuan/mt overnight, down 1.03%. Trading volume was 66,000 lots, and open interest stood at 183,000 lots.

On the macro front, the US dollar was steady against a basket of currencies yesterday. Data showed that US inflation slowed slightly more than expected in April, but the market’s view on the outlook for US monetary policy is unclear. In terms of fundamentals, due to the decrease in arrivals and the increase in exports in Guangdong, inventory fell for the first time. Buyers increased, and spot quotes rebounded slightly. As the delivery approached, the spot cargoes in east China traded with a slight discount. Most of the sellers were unwilling to sell with a discount, and the overall transaction was limited. According to some smelters, the purchasing desire of downstream enterprises is not strong, which is mainly caused by poor demand.

The US inflation data fell more than expected, but the volatile financial market still puts pressure on copper prices. It is expected that copper prices will unlikely rebound.

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