SHANGHAI, Mar 17 (SMM) - LME copper closed with a drop of 0.45% at $8,533/mt overnight. Trading volume stood at 22,000 lots. Open interest stood at 250,000 lots. The most active SHFE 2304 copper contract finished at 66,740 yuan/mt overnight, down 0.52%. Trading volume was 54,000 lots and open interest stood at 125,000 lots.
On the macro front, the European Central Bank still raised interest rates as planned despite the market chaos in recent days, and the market expects that the Fed may also raise interest rates next week. European and American central banks will continue to curb inflation, and concerns about banking crises remain. In terms of fundamentals, copper futures fell sharply due to the impact of the banking crisis yesterday, and imports of copper also showed profit margins. At present, imported copper has not yet flowed in a large amount. Stimulated by the decline in the market, the downstream was actively replenishing cargoes, and the spot quotes rose. Inventory in south China has declined for two consecutive days, the main reason is still that the arrival volume was not large.
On the whole, after the sharp drop in copper prices, the enthusiasm for downstream transactions has increased significantly, and market transactions have been active. In terms of prices, the market expects the Federal Reserve to continue to raise interest rates, and concerns about the banking crisis remain, suppressing the rise in copper prices.
