SHANGHAI, Apr. 8 (SMM) – HSBC’s March manufacturing PMI for China turned out weaker than expected, but growing expectations that the Chinese government would introduce new stimulus measures allowed Chinese stocks to bottom out. Prices for SHFE 1407 copper contracts, which are now the new most active contract, also rebounded last week from buying support, briefly hitting a high of RMB 47,200/mt but falling back to RMB 46,000/mt after meeting resistance. Positions for the most traded contract increased by 50,000 lots, but trading volumes during night trading were down sharply. The SHFE/LME copper price ratio also fell below 7.0 last week. SHFE copper prices may move this week between RMB 46,200-47,800/mt.
Traders in China’s spot copper markets purchased goods actively early last week, and downstream producers increased purchase volumes later in the week due to market optimism toward copper prices and the approach of China’s Qingming holiday.