Market Optimism to Support Copper Prices, Pay Attention To Fed's Speech This Week

The LME is closed today due to the Easter holiday. SHFE 2305 copper contract finished at 68,850 yuan/mt last Friday, up 0.32%. Trading volume was 13,000 lots, and open interest stood at 164,000 lots.

On the macro front, non-farm sector in the United States added 236,000 jobs in March, and the average hourly wages in March, which reflect inflation, also rose. The market expected that the Fed may have to raise interest rates next month, and the U.S. index rose.

On the fundamentals, as of Friday April 7, SMM copper inventories in major Chinese markets decreased 3,900 mt from last Monday to 202,300 mt, up 400 mt from two Fridays ago. This is up 5,700 mt from pre-CNY level, a growth of two consecutive weeks. Active downstream stockpiling last week's end accelerated destocking in east China. Inventories in Guangdong slightly increased by 200 mt to 50,800 mt compared with last Monday, with shipments arrivals and leaving Guangdong basically the same. Downstream purchasing enthusiasm is not high.