SHANGHAI, Jul 4 (SMM) – On Monday, LME copper opened lower at $8,329/mt, and fluctuated upward at the beginning of the session, reaching a high of $8,404/mt, and finally closed at $8,380/mt, an increase of 0.73%. Trading volume was 10,000 lots and open interest was 255,000 lots.
SHFE 2308 copper contract opened at 68,290 yuan/mt overnight, with its session low and high at 68,080 yuan/mt and 68,410 yuan/mt before closing up 0.41% at 68,320 yuan/mt. Trading volume was 22,000 lots and open interest was 191,000 lots.
On the macro front, the U.S. ISM manufacturing PMI recorded 46 in June, lower than the expected 47 and the previous value of 46.9, the lowest since May 2020, the eighth consecutive month of contraction. The dollar and U.S. Treasury yields retreated on weak economic data, casting doubt on whether the Fed might stick to its hawkish policy outlook. In terms of fundamentals, as of Monday July 3, copper stocks in major markets in China increased by 5,900 mt from last Friday to 105,000 mt, but 21,400 mt lower than in the same period last year. On the consumption side, copper prices have rebounded to high levels again, which is expected to weigh on demand. Copper prices are guided by macro sentiment and will move rangebound before the Federal Reserve's July interest rate meeting.
