SHFE copper opened lower in the night session and continued to fluctuate downward during the day, closing down 1.03%. The US dollar index rebounded, US copper pulled back, and the destocking of domestic refined copper social inventory slowed down, leading SHFE copper to also fall back from highs.
Overnight, the US February durable goods orders unexpectedly increased, causing the US dollar index to rebound. Additionally, COMEX copper experienced a jump initially and then pulled back, and SHFE copper also softened. Jinyuan Futures stated that the US auto tariffs have been implemented with no room for negotiation or exemption, and US Fed officials indicated that trade barriers would have a more lasting secondary effect on the base inflation of importing countries. The US dollar rebounded accordingly, causing US copper to jump initially and then pull back.
Recently, there have been reports of supply disruptions in overseas smelting, and supply-side disturbances continue to support copper prices. As of March 27, SMM data showed a slight rebound in inventory compared to Monday. Recently, copper prices have been continuously strengthening, and downstream procurement has been cautious under high prices, with spot discounts widening and the destocking speed of social inventory beginning to slow down. Regarding the supply and demand situation, Jinrui Futures stated that some smelting maintenance has begun in March, but recycled smelting has not been affected, and the production schedule is expected to be high. Recently, there have been reports of smelting production suspensions in Chile and Mexico. On the consumption side, downstream consumption shows signs of marginal weakening, cable operations have decreased, and there has been an increase in the use of recycled materials.
