LME copper prices closed with a drop of 0.25% at $8,359/mt last evening. Trading volume stood at 6,000 lots. Open interest stood at 256,000 lots. The most active SHFE 2308 copper contract finished at 68,010 yuan/mt overnight, down 0.26%. Trading volume was 16,000 lots and open interest stood at 191,000 lots.
On the macro front, no important economic data was released yesterday, and the market bet that the weak US economic data may prompt the Federal Reserve to reconsider its rate hike trajectory. In terms of fundamentals, spot quotes in east China plunged due to the inflow of imported copper and sluggish consumption. Spot quotes are unlikely to rally in the near term due to traders selling off cargoes.
Inventory in south China has dropped for 3 consecutive days, mainly due to less arrivals. The overall transaction was not active. End-user consumption will continue to shrink if copper prices remain high. The market remained cautious, and copper prices fell slightly.
