Copper on MCX settled down 1.08% at 445.45 amid market expectations of a U.S. rate cut and as U.S. and Chinese officials meet in Shanghai to discuss their year-long trade dispute.
The U.S. Federal Reserve is expected to lower interest rates by 25 basis points, cutting for the first time in a decade and potentially weakening the U.S. dollar. Meanwhile, U.S. and Chinese officials are due to meet on Tuesday in Shanghai for talks on a year-long trade dispute that has weighed on global economic growth.
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Japan’s exports of refined copper exports dipped 3.8% during the same period to 55,469 tonnes. China’s refined copper cathode imports fell 12.6% in June from the previous month to 212,328 tonnes and were also down 30.8% year-on-year, according to Reuters calculations based on data released by the General Administration of Customs.
Smaller arrivals of seaborne materials and limited cash flow pressure kept spot copper sellers to hold offers firm in Shanghai, even as downstream consumption barely picked up. Supply shortage kept discounts of hydro-copper at 20-10 yuan/mt, with some low-quality imported materials at a discount of 30 yuan/mt.
China’s central authorities have required 11 provinces and cities to step up efforts to clamp down on foundry capacity expansion, in a bid to further improve air quality. Local governments are also ordered to strictly check capacity swap plans, ensure the shutdown of obsolete facilities and standard construction of new facilities.