LME copper prices opened at $8100.5/mt and closed at $8082/mt last evening, down 0.33%. Trading volume was 17,000 lots and open interest stood at 269,000 lots. The most active SHFE 2311 copper contract prices opened at 67110 yuan/mt and finished at 67190 yuan/mt last evening, up 0.01%, with the low-end of 67110 yuan/mt and the high-end of 67350 yuan/mt. Trading volume was 23,000 lots, and open interest stood at 152,000 lots.
On the macro front, US durable goods orders increased by 2% month on month in August, compared to a drop of 0.5% expected by the market. There were signs that business equipment spending was regaining some momentum after falling early in the third quarter, suggesting investment remained strong despite rising borrowing costs.
In terms of fundamentals, transaction enthusiasm in East China dropped significantly yesterday as some downstream buyers had completed stockpiling and continued deliveries by smelters during holidays.
It is expected that market activity will continue to decline today. In South China, due to the limited arrivals of goods, the inventory dropped significantly yesterday. The sellers offered goods at a high price, but the downstream acceptance was not high. Demand is expected to continue to shrink. The copper prices will remain at low levels before the holidays.
