Copper prices inched lower as market awaiting more data guidance

LME copper prices opened at $8230.5/mt and closed at $8230/mt last Friday evening, a drop of 0.9%, with the low-end of $8213/mt and the high-end of $8259.5/mt. Trading volume was 17,000 lots and open interest stood at 283,000 lots. The most active SHFE 2310 copper contract prices opened at 68600 yuan/mt and finished at 68590 yuan/mt last Friday evening, down 0.36%, with the low-end of 69410 yuan/mt and the high-end of 68640 yuan/mt. Trading volume was 29,000 lots, and open interest stood at 148,000 lots.

On the macro front, New York Fed President Williams, who has permanent voting rights in the United States, believes that monetary policy is in a good position, and actions depend on more data to be released in September. In addition, the market has high expectations that the United States will maintain high interest rates for a longer period of time, extending the rise of the U.S. dollar index.

As of Friday September 8, SMM data showed that copper inventory across major Chinese markets stood at 100,500 mt, up 3,800 mt from last Monday and up 11,900 mt from two Fridays ago. Inventories have increased for two consecutive weeks. Due to the inflow of imported copper in east China, the inventory increased; the inventory in south China declined, mainly due to the increase in downstream purchases after the copper price fell. As delivery approaches and given the big price spread between the SHFE front-month and SHFE next-month copper contracts, demand is expected to be limited. Before more economic data from the United States is released, it is expected that there will be limited room for copper price increases.