Copper Prices Rebounded Sharply as Dollar Fell on Market Awaiting Fed Interest Rate Decision

SHANGHAI, Mar 22 - LME copper prices closed at $8,782/mt last evening, up 0.92%. Trading volume was 17,000 lots and open interest stood at 244,000 lots. The most active SHFE 2305 copper contract finished at 68,110 yuan/mt overnight, up 1.07%. Trading volume was 55,000 lots, and open interest stood at 156,000 lots.

On the macro front, market expectations that stress in the banking sector may keep the Fed and Bank of England from raising or raising interest rates sharply this week. In addition, concerns over the banking crisis eased, prompting some investors to cautiously return to high-risk assets. And the US dollar index fell overnight. In terms of fundamentals, warrants in Shanghai have been offered for sale recently, and imported copper is still flowing into the spot market, which may deal a certain blow to the quotes in the spot market. In addition, near the end of the month, in order to meet the demand for long-order delivery, some traders received goods at low prices in the market to support the spot transaction price.

Copper prices rebounded yesterday, but due to little change in consumer demand, downstream buyers pushed for lower prices. Refineries were not willing to sell cargoes, and the overall transaction was quiet. In terms of consumption, due to the limited increase in demand, most of the trades were done at lower prices, and it is expected that there will be little demand improvement in the short term. Copper prices rebounded sharply as the market awaited Fed interest rate hike.