LME copper closed at $8,231.5/mt last evening, a rise of 1.5%.Trading volume was 20,000 lots and open interest stood at 252,000 lots. The most active SHFE 2307 copper contract finished at 65,760 yuan/mt overnight, up 0.75%. Trading volume was 46,000 lots and open interest stood at 185,000 lots.
On the macro front, ADP employment in the US in May was 278,000, compared to the expected 170,000, and the previous reading of 296,000. In addition, the ISM manufacturing index in the United States recorded 46.9 in May, which was lower than that in April and less than expected. It has shrunk for seven consecutive months. The market expected the Fed to pause interest rate hike in June. Sellers in east China raised prices as available cargoes were scarce. Downstream buying interest weakened amid higher SHFE copper prices.
Inventories in Guangdong fell for 3 consecutive days, and the sellers raised their quotes. Downstream buyers purchased as required. The overall transaction was weak. Weak domestic demand and a surge in copper futures prices depressed downstream demand. The market expects that the Fed will end the interest rate hike in June, and the pressure on copper prices will weaken.
More popular news:
Commerzbank Lowers Price Forecast for Copper, Aluminium, Zinc and Nickel for 2023 and 2024
Glencore to Massively Expand Copper Capacity
