LME copper prices closed with a drop of 1.37% at $8,178/mt last evening. Trading volume stood at 26,000 lots. Open interest stood at 278,000 lots. SHFE 2309 copper contract prices finished at 67,820 yuan/mt last evening, down 0.66%. Trading volume was 48,000 lots, and open interest stood at 163,000 lots.
On the macro front, last night's data showed that U.S. retail sales rose more than expected in July. After the release of strong U.S. data, the Fed may keep high interest rates for a longer period of time. The U.S. index rose, weighing on copper prices. In terms of fundamentals, the market activity was quiet. Only some deliverables in east China were sought-after, and the overall transaction sentiment was weak; inventories in south China fell for three days in a row due to limited arriving shipments.
Downstream buying interest was weak. Sellers in south China deliver their cargoes directly to warehouses. In terms of consumption, some companies are expected to maintain more cautious purchases in the short term. Copper prices will harly rise amid the strong US economic data.
