SHANGHAI, Mar 13 - LME copper closed at $8,777/mt last Friday evening, a drop of 0.62%. Trading volume was 19,000 lots and open interest stood at 246,000 lots. The most active SHFE 2304 copper contract finished at 69,020 yuan/mt last Friday evening, down 0.17%. Trading volume was 49,000 lots, and open at 143,000 lots. On the macro front, the U.S. non-farm payrolls data for February showed a slowdown in wage growth, suggesting that easing inflationary pressures may keep the pace of Fed rate hikes relatively mild, sending the dollar lower.
On the fundamentals, as of Friday March 10, SMM copper inventories in major Chinese markets decreased 37,000 mt to 271,100 mt from last Monday, down 38,000 mt from the two Fridays ago. Delivery taking volume in east China increased significantly last week, mainly due to the drop in copper prices and the increase in orders. Guangdong also saw a significant increase in consumption due to the production resumption by large downstream producers. With the arrival of the peak season and the drop in copper prices, consumption is expected to continue to recover. Due to the influence of overseas macroeconomics, the market risk aversion has increased, weighing on copper prices.
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