SHANGHAI, Mar 15 - LME copper prices closed at $8,827/mt overnight, a decline of 1.13%. Trading volume was 19,000 lots and open interest stood at 246,000 lots. The most active SHFE 2304 copper contract finished at 68,570 yuan/mt overnight, up 0.44%. Trading volume was 27,000 lots, and open interest stood at 141,000 lots.
On the macro front, the US CPI in February met market expectations and was lower than the previous value, and did not fall more than expected. That made the market have no clear judgement on the Fed’s interest rate hike path, and the US index fluctuated widely overnight. With the backwardation on SHFE as the delivery of the SHFE March copper contract nears, sellers raised their quotes. But downstream barely accepted price hikes. Some downstream buyers placed orders on March 13 when copper prices dipped. Trades in east China were quiet. Inventories in south China ended a five-day losing streak and rose slightly, mainly due to weakening consumption. At the same time, the downstream is worried that copper prices will continue to fall, and their desire to replenish cargoes was weak.
