SHANGHAI, Apr. 16 (SMM) – LME copper prices once fell to USD 5,874/mt due to weak China economic figures Wednesday but then rose back on climbing crude oil and a pullback in the US dollar index to USD 5,962/mt, up USD 17/mt.
Fed Beige Book points out Fed officials are not optimistic toward US economy, driving down the US dollar index.
EIA said US crude oil inventories increased 1.29 million barrels for the week ending April 10, the smallest weekly rise so far this year. Meanwhile, US shale oil output may fall to 4.98 million barrels in May, the first decline in about four years. Crude oil prices surged 6%.
SHFE 1506 copper contract opened lower at RMB 42,830/mt during night session Wednesday, and drifted high to RMB 43,140/mt before ending at RMB 43,180/mt, up RMB 180/mt. Positions in the most active contract grew 1,628 and trading volumes were around 120,000 lots.
SHFE 1506 copper contract prices are expected at RMB 42,700-43,300/mt on April 16. Spot copper may be offered at premiums of RMB 70-130/mt to SHFE 1505 copper contract.