LME copper prices opened at a low of $9,509/mt on Wednesday, and hiked to a high of $9,616.5/mt, but finally closed down at $9,548/mt. Trading volume was 23,000 lots, and open interest was up 0.78% at 335,000 lots. The most-traded SHFE 2406 copper contract opened at 77,290 yuan/mt, and dipped to a low of 77,020 yuan/mt after reaching a high of 77,840 yuan/mt, and finally closed at 77,110 yuan/mt. Trading volume was 77,000 lots and open interest was 220,000 lots.

Summary: On the macro front, China reduced its holdings of US Treasury bonds by $23 billion in February. Lowering US bond yields amid big sell-off and falling US dollar index pushed up copper prices. In terms of fundamentals, copper imports shrank significantly due to losses of 800 yuan/mt, while domestic copper supply appeared ample. In terms of consumption, downstream processing enterprises only purchased copper for hand-to-mouth use. Transactions were thin. In terms of price, macro market sentiment remained strong recently. Copper prices may remain high.