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Copper Prices Strengthen As Fed Pauses Interest Rate Hike

iconJun 15, 2023 11:32
Source:SMM
LME copper closed with a gain of 1.01% at $8,528/mt overnight. Trading volume stood at 22,000 lots. Open interest stood at 254,000 lots. The most active SHFE 2307 copper contract finished at 68,160 yuan/mt overnight, up 0.44%. Trading volume was 29,000 lots and open interest stood at 188,000 lots.

LME copper closed with a gain of 1.01% at $8,528/mt overnight. Trading volume stood at 22,000 lots. Open interest stood at 254,000 lots. The most active SHFE 2307 copper contract finished at 68,160 yuan/mt overnight, up 0.44%. Trading volume was 29,000 lots and open interest stood at 188,000 lots.

On the macro front, the Federal Reserve kept interest rates unchanged as expected, but hinted that borrowing costs would rise another 50 basis points by the end of December. The US dollar index rebounded after falling. In terms of fundamentals, since the Federal Reserve announced the CPI data, copper prices have jumped higher. Yesterday, copper prices remained at around 68,000 yuan/mt, depressing downstream buying interest. Spot quotes fell. Sellers refrained from selling with prices lower than the delivery price.

The overall transaction was poor. In terms of consumption, copper prices surged to high levels amid the traditional off-season. It is expected that processing companies will purchase as required. Copper prices are expected to remain strong as the Fed suspended interest rate hike in June.

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