Copper Prices Went Down Overnight on Rebounding US Dollar Index

Published: Jun 26, 2023 09:33

Source: SMM

Save

LME copper prices closed at $8,419.5/mt last evening, down 1.86%. Trading volume was 19,000 lots and open interest stood at 262,000 lots. The SHFE market was closed due to the Dragon Boat Festival holidays. On the macro front, Federal Reserve Chairman Powell said at a hearing of the Senate Banking Committee last Thursday that it would be appropriate to raise interest rates twice again this year, and there is still a long way to go to solve the inflation problem. The hawkish speech made the dollar rise.

In terms of fundamentals, copper prices soared to around 69,000 yuan/mt on the last trading day before the Dragon Boat Festival, which suppressed the purchasing of downstream customers. And most downstream companies had restocked cargoes on the prior day, weighing on spot quotes. The overall transaction was subdued. There would be inflows of imported copper after the holiday but most of the cargoes will go directly to downstream buyers. During the off-season, if copper prices continue to run at a high level, demand will be further depressed. Hawkish tone of central banks reduced risk appetite for risky assets, and the rise in the US index put pressure on copper prices.

Market forecast Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Copper Prices Drop, Spot Premiums Rise as Shanghai Copper Month Spread Narrows

[SMM SHFE Copper Flash] As copper prices fell and the price spread between SHFE copper futures contracts for different delivery months narrowed, suppliers showed a clear willingness to hold prices firm, and the center of spot premiums moved higher intraday compared with yesterday.

1 hour ago

Capstone Copper Achieves Record Quarterly Production; Overnight LME Copper and SHFE Copper Extend Declines [SMM Copper Morning Meeting Minutes]

SMM Morning Meeting Minutes: Overnight, LME copper opened at $12,843/mt, fluctuated downward in early trading to a low of $12,722/mt, then rose in a stepwise manner and climbed to $12,987/mt near the close, finally settling at $12,964.5/mt, down 0.92%. Trading volume reached 40,500 lots, and open interest reached 307,000 lots, down 4,847 lots from the previous trading day, mainly due to long position reductions. Overnight, the most-traded SHFE copper 2704 contract opened at 100,530 yuan/mt, then fluctuated downward to a low of 100,200 yuan/mt. Subsequently, the center of copper prices gradually moved higher and hit a high of 101,530 yuan/mt near the close, finally settling at 101,330 yuan/mt, down 1.05%. Trading volume reached 92,000 lots, and open interest reached 194,000 lots, down 3,792 lots from the previous trading day, mainly due to long position reductions.

1 hour ago

16 hours ago

Zambia to Reopen Key DRC Mineral Export Route After Rain Damage Disrupted Transport

Zambia’s Minister of Infrastructure said the main corridor for the DRC’s exports of copper, cobalt, and other minerals was expected to reopen after transport was disrupted by road damage.The DRC is Africa’s largest copper producer and the world’s second-largest copper producer by production. The DRC is also the world’s leading supplier of cobalt, with cobalt production accounting for more than 70% of global production, and most cobalt is exported together with other critical battery minerals.Kasumbalesa is the busiest transit point for the DRC’s metal cargo (mainly bound for China and the US). On Sunday, traffic at the crossing was suspended after heavy rains washed away parts of the road.So far, no mining company has reported that shipments of copper or cobalt have been impeded.

16 hours ago