LME copper prices closed at $8,288/mt overnight, down 0.61%. Trading volume was 12,000 lots and open interest stood at 250,000 lots. The most active SHFE 2307 copper contract finished at 66,840 yuan/mt overnight, down 0.39%. Trading volume was 29,000 lots and open interest stood at 182,000 lots.
On the macro front, there were few economic data yesterday, and the market remained cautious ahead of several key policy decisions to be made this week. The Fed is expected to keep interest rates unchanged for the first time since January 2022. The US dollar surged before falling.
As of Monday June 12, SMM copper inventory across major Chinese markets stood at 98,400 mt, down 11,000 mt from last Friday and down 17,300 mt from the same period last year. The inflows of imported copper were limited. This, combined with concentrated maintenance at smelters, reduced domestic copper supply. Hence inventories dropped across China.
In terms of consumption, due to the approaching delivery and the high premiums, downstream buying interest was weak.
Copper prices are expected to remain rangebound before the announcement of the Fed’s rate decision.
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