LME copper prices slipped Friday,closing at $13,587 per metric ton. Down 0.50% from previous session. Day opened at $13,625.5/mt,dipped to $13,584.6/mt,peaked at $13,675.7/mt . Trading volume hit 10,500 lots. Open interest climbed by 2,615 lots to 253,000. Sign of bearish mood.
Meanwhile,Shanghai Futures Exchange (SHFE) copper market was quiet,holiday shut it down. June 18, SHFE copper 2607 contract started lower at 105,510 yuan/mt. Fluctuated,hit low of 104,460 yuan/mt,ended at 104,590 yuan/mt. Contango spread between front-month and next-month contracts varied 120-80 yuan/mt.
China's customs data showed May imports of copper ores,concentrates at 2,360,706.88 metric tons. Slight month-on-month rise of 0.39%,year-on-year dip of 1.74%. Imports from Chile rose to 711,404.02 metric tons. Peru imports surged 19.15% month-on-month to 691,924.04 metric tons.
On export side,China's copper ores,concentrates exports jumped to 2,711.03 metric tons in May. Up 19.71% month-on-month,514.63% year-on-year. Exports to Malaysia reached 2,297.60 metric tons,1.50% rise from prior month.
Shanghai spot market saw pre-holiday restocking before Dragon Boat Festival . Buying sentiment ticked up,but demand weak. Standard-quality copper first quoted at 30 yuan/mt premium,then cut to near parity. By second session,some brands quoted at 20 yuan/mt discount . Buyers reluctant to pay more.
In Guangdong,average price for #1 copper cathode dropped to 105,165 yuan/mt,down 335 yuan/mt from day before. SX-EW copper averaged 105,005 yuan/mt,down 405 yuan/mt. Suppliers cut prices to boost sales amid sluggish end-use demand .
Secondary copper prices also pressured down. Futures closing price at 104,590 yuan/mt,730 yuan/mt less than prior day . Spot premium held at 20 yuan/mt. As holiday neared,some secondary copper rod firms did routine stockpiling,though limited downstream buying kept trading activity muted.
Market mood hit by potential U.S . Federal Reserve rate hike. Traders priced in 25-basis-point rise in September . Strong U.S. dollar,oil sanction talks with Iran added uncertainty. Middle East situation in spotlight.
Copper market likely to stay under pressure. Weak demand,limited appetite for higher prices may linger…
