Copper prices went down overnight on rebounding US dollar index

Published: Sep 26, 2023 10:14
LME copper prices opened at $8163/mt and closed at $8149/mt last evening, down 0.6%. Trading volume was 17,000 lots and open interest stood at 266,000 lots.

LME copper prices opened at $8163/mt and closed at $8149/mt last evening, down 0.6%. Trading volume was 17,000 lots and open interest stood at 266,000 lots. The most active SHFE 2311 copper contract prices opened at 67800 yuan/mt and finished at 67480 yuan/mt last evening, down 0.57%, with the low-end of 67410 yuan/mt and the high-end of 67880 yuan/mt. Trading volume was 28,000 lots, and open interest stood at 146,000 lots.

On the macro front, Chicago Fed President Goolsby, who is regarded as a dovish representative, said that continued high inflation risk is a greater risk, a soft landing is possible, and it "feels" that interest rates will be maintained at high levels for longer than the market expects. The Fed's hawkish comments sent the dollar higher and copper prices were under pressure. In terms of fundamentals, market activity was relatively brisk ahead of holidays.

Transactions in East China were acceptable, but the price difference between the cargoes with front-month invoice and with next-month invoice widened. Inventories in South China have declined for four consecutive days, mainly due to the increase in demand before the holiday. Available spot resources were not abundant, and the spot premiums in South China rose In terms of consumption, there is more demand for downstream replenishment near the holidays, and it is expected that consumer demand will increase significantly this week. Copper prices will weaken due to higher US dollar.

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