Commodities
Copper Prices Plummet Amid Rising Oil Prices and Hawkish Fed Expectations
Copper prices closed lower on both LME and SHFE markets yesterday. The most-traded SHFE copper contract, 2611, opened at 109,260 yuan/mt but fell to a low of 108,970 yuan/mt before closing at 109,260 yuan/mt, down 0.16%. Trading volume was 31,000 lots.
The LME copper market also closed lower, with prices falling 1.05% to $14,478/mt. The market opened at $14,478/mt and hit a high of $14,481/mt before closing at the same price as opening. Trading volume was 19,000 lots.
The decline in copper prices can be attributed to rising oil prices and hawkish expectations for the US Fed, which intensified inflation concerns. As a result, copper prices are expected to consolidate on a subdued note within a narrow range today.