The London Metal Exchange (LME) copper prices decreased by 2.47 percent to close at 8,530 dollar/metric tonnes yesterday. There were 38K lots traded, and there were 253K lots of open interest.
On the macro front, the euro declined and the United States dollar index climbed. Which weighed on copper prices as market risk aversion occurred amid fresh worries about the banking sector and the future of the global economy.
Fundamentally, the market is worrie about the influx of import copper. After the import losses shrank to roughly 100 yuan/metric tonnes.
However, as the month’s conclusion drew near, some dealers made deliveries for a long-term orders. And fewer deals were made in response to modest orders. Spot quotations did not decline dramatically.
The approaching Labour Day holiday & decreased Shanghai Futures Exchange copper prices may result in a rise in downstream demand in the near future.
The economy of the United States is causing the market to be concerned, and domestic demand is still sluggish.
The cost of copper is under pressure. The market is anticipating the release of a number of the United States economic data points later this week. Which might influence the Fed’s attitude on interest rate hikes and influence commodity prices.