Strong Expectations of Domestic Economic Improvement Pushed Copper Prices Higher

LME copper prices closed at $9,179.5/mt overnight, a rise of 0.75%. Trading volumes were 18,000 lots and open interest stood at 241,000 lots. The most active SHFE 2304 copper contract finished at 70,590 yuan/mt overnight, up 0.93%. Trading volume was 28,000 lots, and open interest stood at 154,000 lots.

On the macro front, US business activity rebounded in February, hitting its highest level in eight months, and strong economic data once again showed the resilience of the US economy. But the market is also waiting for more data to judge the direction of the Fed's interest rate hike. In terms of fundamentals, the SHFE copper has risen recently, preventing spot discounts from continuing to expand. Downstream buying interest was not strong. It is expected that consumption will hardly change significantly under the pressure of high prices. It is expected that copper prices will remain rangebound at high levels in anticipation of the domestic peak season.