SMM Views on Copper Price Direction in March

SHANGHAI, Mar 17 (SMM) - The changes in the market's expectations for the Fed's interest rate hike at its policy meeting in the second half of March will have a major impact on copper prices. The economic data that have been released recently all pointed to slower-than-expected cooling of the US economy. Hence the US dollar may continue to strengthen in the near future. Import losses, though having narrowed from above 1,000 yuan/mt to around 500 yuan/mt, still hampered customs clearance of seaborne copper.

Meanwhile, the peak season and policy stimulus after the Two Sessions (NPC and CPPCC) are expected to boost market consumption. With domestic fundamental support for SHFE copper bearing fruit, the most active SHFE copper contract is expected to trade between 67,500-70,500/mt in March, and LME copper will trade between $8,700-9,150/mt.