Copper Prices Fell As US Job Market Remains Strong

LME copper prices closed with a drop of 0.81% at $8,181/mt last evening. Trading volume stood at 22,000 lots. Open interest stood at 261,000 lots. SHFE 2308 copper contract finished at 66,930 yuan/mt last evening, down 0.53%. Trading volume was 39,000 lots, and open interest stood at 182,000 lots.

On the macro front, the US GDP growth in the first quarter was significantly revised up to 2%, growing expectations of another two interest rate hikes by the Federal Reserve this year. In addition, economic data showed that the US labor market remained solid, and a rise in the US index weighed on copper prices. In terms of fundamentals, due to the fading of the mid-year financial pressure of enterprises in east China, spot quotes rose. But the overall market transactions were not active. The inventory in south China has increased for three consecutive days as sellers sold actively. Downstream buyers purchased as needed. Spot quotes continued to decline.

Spot trading was subdued. Copper prices were weighed down by market concerns about the Fed raising interest rate.