SHANGHAI, Mar. 9 (SMM) – LME copper prices fell last Friday to close down USD 86/mt at USD 5,733/mt, the biggest loss in six weeks.

US nonfarm payrolls surged by 295,000 in February, with the growth above 200,000 for a twelfth straight month, while its unemployment rate fell unexpectedly to 5.5%, a low last seen in May 2008. The recovering labor market boosted market expectations that the US Federal Reserve will raise interest rates in the middle of this year. In response, the US dollar index rose 1.31%, the biggest rise in over three years, to end at 97.64, exerting considerable downward pressure on base metals prices.

Gold slumped 2.7% to end at a nearly four-month low, and crude oil in New York tumbled 2.3%.

SHFE most-active copper contract opened at RMB 42,250/mt for last Friday’s night session and fell all the way to RMB 41,810/mt after touching RMB 42,320/mt briefly. The May delivery ended the session at RMB 41,920/mt, posting a RMB 470/mt decline. Positions in the May delivery copper grew 1,196, and trading volumes were about 206,508 lots.

SHFE 1505 copper contract should trade at RMB 41,500-42,000/mt on March 9. Spot copper may be offered between a discount of RMB 50/mt and a premium of RMB 20/mt.