SHANGHAI, Mar. 10 (SMM) – The violent attack in the southwest Chinese city of Kunming, and the Ukraine crisis, caused SHFE copper prices to tumble last Monday, with selling pressure sending prices down to a nearly nine-month low of RMB 48,600/mt, or a loss of over 2%. SHFE copper prices regained some ground Wednesday after Chinese Premier Li Keqiang presented the government work report. Although shorts were actively liquidating positions, a lack of buying support limited any upward momentum in copper prices. SHFE copper prices may find support at RMB 48,800-49,000/mt, with resistance at RMB 49,500-49,800/mt.
Last week, the SHFE/LME copper price ratio was still low at 7.0, and the recent RMB depreciation caused more imported copper to flow into domestic spot markets. Those imports, combined with an inflow of hedged goods, left ample supply in Chinese copper market.