LME copper prices closed at $8,276/mt last Friday evening, a rise of 0.51%. Trading volume was 12,000 lots and open interest stood at 280,000 lots. The most active SHFE 2309 copper contract prices closed at 68,230 yuan/mt overnight, a drop of 0.1%. Trading volume was 17,000 lots, and open interest stood at 148,000 lots.
Macroscopically, the issuance scale of U.S. treasury bonds has surged in the third quarter of this year. The new issuance scale of U.S. treasury bonds will hit a record high in the same period. The cost of issuance continues to rise. The market is more worried about the U.S. debt problem.
SMM data showed that as of Friday August 18, copper inventory across major Chinese markets stood at 74,800 mt, down 7,800 mt from last Monday and down 17,700 mt from two Fridays ago. Inventories hit the lowest for the year. Due to the low shipments arrivals of domestic and imported copper as well as increased downstream purchases, inventories in east China declined. Inventory in south China also fell sharply due to limited arriving shipments and the large price difference between Shanghai and Guangdong, driving cargoes to go to east China. In terms of consumption, if copper prices remain at the current position, it is expected that demand will still have room to rise. Copper prices will stay low in the near future.
