Copper Prices Inched Lower As Fed Raised Interest Rates

Published: Jul 27, 2023 10:43

Source: SMM

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LME copper closed at $8,604/mt in overnight trading, a drop of 0.65%. Trading volume was 13,000 lots and open interest stood at 274,000 lots. The most active SHFE 2309 copper contract finished at 69,070 yuan/mt overnight, down 0.16%. Trading volume was 24,000 lots, and open at 187,000 lots.

On the macro front, the Federal Reserve raised interest rates by 25 basis points as scheduled, and Powell said at a subsequent press conference that inflation in the United States remained high. The hike raised the target range for the benchmark overnight rate to 5.25-5.50%, and the accompanying policy statement left the door open for another hike. Most of the downstream buyers stood on the sidelines, and the overall transaction was quiet. Downstream buyers are expected to purchase as needed in the near term due to market caution.

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SMM Daily Comments (Jul 3): SHFE Base Metals Rose across the Board with Tin Surging, Ferrous Metals Prices Closed Mixed

SMM Daily Comments (Jul 5): Base and Ferrous Metals Prices Mostly Fell, WTI Soared despite Lingering Concerns over Global Economic Downturn

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