SMM

LME copper prices opened at $8933/mt and closed at $8912/mt last evening, down 0.09%, with the highest of $8976/mt and the lowest of $8835.5/mt. The trading volume was 29,000 lots, and open interest stood at 301,000 lots. SHFE 2405 copper opened at 71600 yuan/mt overnight and fell to 71550 yuan/mt after rising to 72140 yuan/mt, closing at 71870 yuan/mt, up 0.27%. Trading volume was 59,000 lots, and open interest stood at 214,000 lots. On the macro front, the number of initial jobless claims in the United States fell more than expected in the week to March 9, the largest increase since August last year, boosting the dollar and putting pressure on copper prices. In terms of fundamentals, the oversupply structure continues. In terms of consumption, copper prices have soared, but sellers are unwilling to cut prices for shipments. Downstream buyers are purchasing more on demand, and market trading is quiet. On the fundamentals, as of March 14, SMM copper inventories in major Chinese markets increased 25,300 mt from Monday to 389,100 mt, and up 41,300 mt from last Thursday. This is up 220,800 mt from pre-CNY level. On the whole, although there is pressure on copper prices due to the U.S. index, news of China's production cuts is still fermenting. U.S. retail sales in February were weak on a monthly basis and oil prices were rising. Copper prices are expected to remain rangebound at highs before delivery.