LME copper prices closed at $8,744/mt last evening, down 0.42%. Trading volume was 18,000 lots and open interest stood at 252,000 lots. The most active SHFE 2306 copper contract finished at 68,090 yuan/mt overnight, down 0.45%. Trading volume was 52,000 lots and open interest stood at 165,000 lots.
On the macro front, the market generally expects the Fed to raise interest rates at next week's policy meeting, and will turn its attention to this week's economic data, which may affect the Fed's next policy decision and the path of subsequent interest rate hikes. The US index fell all the way overnight.
On the fundamentals, As of Monday April 24, SMM copper inventory across major Chinese markets decreased 6,600 mt from last Friday to 176,900 mt, up 62,000 mt YoY. Specifically, copper prices fell at the end of last week, and downstream replenishment enthusiasm increased, resulting in a decline in inventories. In addition, after the delivery of the April contract was completed, the willingness of the smelter to ship to the warehouses has also declined. This, combined with the cargoes under registered warrants offered for sale, lowered inventories.
Expectations over Fed rate hike will give significant pressure on copper prices.
