LME copper prices fell all the way to USD 6,095/mt on Monday, a 4.5-year low, and closed at USD 6,142/mt, posting a decline of USD 108/mt, or 1.8%.
In Europe, markets predict the left-wing Syriza party which aims to scrap the austerity measures will win the snap election in Greece. Besides, the European Central Bank is expected to introduce significant easing policies, weighing down the euro. The euro weakened to a low last seen in March 2006 against the dollar, pushing the US dollar index to a 9-year high.
The Brent oil slumped 6.6% to a low of USD 52.55/bbl, the lowest since May 2009. NYMEX crude oil tumbled to USD 49.95/bbl.
The US stocks closed lower, with the Dow ending down 331, and the S&P 500 presenting the biggest fall in three months.
SHFE most-active copper contract started at RMB 44,210/mt for Monday’s night session and dropped below RMB 44,000/mt. The prices then stabilized and closed at RMB 44,710/mt, down RMB 540/mt. Trading volumes of the most active contract surged to about 290,000 lots, while positions increased 346. Volumes for April-delivery copper were around 100,000 lots, and holdings increased 8,474. Copper prices are expected to fall significantly in the first quarter of 2015.
SHFE 1503 copper contract prices are expected to move at RMB 44,400-44,900/mt on January 6. Physical copper will be quoted between a discount of RMB 50/mt and a premium of RMB 30/mt to SHFE 1501 copper contract.
Zhejiang Yaang Pipe Industry Co., Limited