LME copper prices opened at $8387/mt overnight before reaching a low of $8382/mt and a high of $8465.5/mt, and closed at $8458.5/mt, a rise of 1.11%. Trading volumes were 17,000 lots and open interest stood at 278,000 lots.
The most active SHFE 2309 copper contract opened at 69020 yuan/mt last evening, and finished at 69460 yuan/mt, up 0.58%. Trading volume was 21,000 lots and open interest stood at 131,000 lots.
On the macro front, last night's data showed that U.S. business activity came to a near standstill in August, the slowest growth since February, as the demand for new business in the huge service industry shrank, and the U.S. index fell back, which is positive for copper prices.
In terms of fundamentals, due to the rise in copper prices yesterday, only some standard-quality copper that can be used for delivery in east China was traded, and most of the downstream was in a wait-and-see state. The premiums and discounts in south China fell significantly yesterday, but the overall transaction was not active. In terms of consumption, affected by the rise in copper prices, downstream processing companies have seen a significant drop in orders, and their purchasing enthusiasm has also declined. If copper prices remain above 69,000 yuan/mt, demand is expected to decline further. In terms of prices, the market is worried about the US economic situation and is waiting for the Jackson Hole symposium to provide guidance on interest rates. Copper prices are expected to run strongly.
