LME Cash-3M Backwardation/Contango and Open Interest Changes

Overnight, LME copper opened at $14,231/mt, edged down to $14,220/mt in early trading, then drifted higher to a high of $14,282.5/mt, and finally closed at $14,245/mt, up 0.42%, with trading volume of 16,000 lots and open interest of 266,000 lots, an increase of 2,569 lots from the previous trading day, indicating bulls adding positions. Overnight, the most-traded SHFE copper 2610 contract opened at 108,220 yuan/mt, drifted higher to a high of 108,540 yuan/mt in early trading, then pulled back to a low of 108,120 yuan/mt, and finally closed at 108,150 yuan/mt, up 0.22%, with trading volume of 34,000 lots and open interest of 200,000 lots, an increase of 8,439 lots from the previous trading day, indicating bulls adding positions.

On August 21, Foshan Huahong Copper Pipe & Tube Co., Ltd., located in Shishan Town, Nanhai District, Foshan City, announced the cessation of its operations. The company was established in 2004 with a registered capital of 150 million RMB, and was once a leading enterprise in the Foshan refrigeration copper pipe & tube industry. It was also listed among the top 500 manufacturing enterprises in Guangdong Province and was recognized as a provincial high-tech enterprise.