SHANGHAI, Mar. 13 (SMM) –The macroeconomic news front was relatively quiet Monday. The US and European markets continued to absorb China's economic data, showing China's copper imports in February nearly doubled YoY. Data also showed that China posted the biggest trade deficit in at least ten years in February, stocking market fears the country's economic growth will slow further. Besides, investors kept cautious ahead of Tuesday's US Federal Reserve policy meeting, causing the US and European stock markets to swing between gains and losses. In response, market activity on the LME remained light, and LME copper prices continued to fluctuate in a narrow band, but won support at USD 8,400/mt before finally settling at USD 8,447/mt, a slight decline of USD 47/mt.
LME copper prices will be more guided by currency markets Tuesday owing to limited news. Hence, LME copper prices are expected to move in a similar band with the prior trading day, between USD 8,400-8,500/mt during Tuesday's Asian trading hours. Chinese stock markets will continue to struggle near the 10-day moving average. SHFE copper prices will follow LME copper prices to post cautious movements after the opening, while SHFE 1206 copper contract prices will fluctuate in the RMB 60,200-60,900/mt range. Spot copper offers are estimated between discounts of negative RMB 50/mt and premiums of positive RMB 50/mt versus SHFE 1203 copper contract.