Copper prices remained relatively stable as market awaiting more data guidance

LME copper prices closed at $8,292/mt last evening, down 0.04%. Trading volume was 17,000 lots and open interest stood at 281,000 lots. The most active SHFE 2309 copper contract prices finished at 68,170 yuan/mt last evening, up 0.28%. Trading volume was 22,000 lots and open interest stood at 165,000 lots.

On the macro front, Kaplan, the former chairman of the Federal Reserve Bank of Dallas, said that the ratio of US government debt to GDP, deficit expectations and fiscal spending have already had an impact on the bond market. The market is more waiting for new catalysts to judge the downside space of copper prices.

On the fundamentals, as of Monday August 14, SMM copper inventory across major Chinese markets decreased 9,900 mt from last Friday to 82,600 mt, up 12,300 mt YoY. Inventories in both east China and south China declined due to the small amount of goods arriving over the weekend, and downstream companies actively replenishing when copper prices were low. In addition, there were no large amounts of shipments arrivals of imported copper. In terms of consumption, the enthusiasm for downstream procurement was not strong, and the demand is expected to remain weak. Copper prices will have limited downside room in the near term.