There is still some time before the Fed and ECB hold their interest rate meetings in May. The guidance from fundamentals on copper prices will continue to increase.
In terms of fundamentals, as of last Friday March 31, SMM copper inventory across major Chinese markets stood at 201,900 mt, up 1,900 mt from two Fridays ago. Higher copper prices dampened consumption.
The most active SHFE copper contract prices are expected to move between 68,500-70,000/mt this week, and LME copper will trade between $8,800-9100/mt.
In China’s domestic spot market, sellers are optimistic over spot premiums in the traditional peak season in April, citing significant destocking in March. Spot premiums are estimated at 50-140 yuan/mt.
