Volatility to Grow in Base Metals, SMM Says

[SMM Shanghai Spot Copper] Copper prices opened lower with a gap in the night session yesterday, and some enterprises placed orders to restock at low levels. Intraday procurement demand increased somewhat, but considering that replenishment had already been concentrated the previous day, actual additional purchasing was limited. According to data released by SHFE on March 19, SHFE copper warrants decreased by 12,200 mt during the day, confirming that after copper prices pulled back, downstream buying-the-dip enthusiasm picked up, and the center of spot premiums moved higher accordingly. From the market structure perspective, the import profit window widened slightly, and expectations for subsequent inflows of cargo from outside China increased, which may put some pressure on the supply side. Overall, amid the tug-of-war between faster destocking and supplier selling, Shanghai spot copper premiums are expected to remain at the current level tomorrow.

[SMM Brass Bar Bulletin] According to SMM, affected by price fluctuations, copper billet enterprises mostly adopted a strategy of restocking when prices were low on the raw material side to control procurement costs; downstream enterprises maintained a procurement pace of purchasing as needed, with relatively cautious sentiment toward picking up goods. As a major brass billet production hub in China, Ningbo saw enterprise production and shipment pace remain stable, with a moderate overall market trading atmosphere, though wait-and-see sentiment increased.