SMM

LME copper prices opened at $8646/mt and closed at $8568/mt last Friday, down 0.85%, with the highest of $8689/mt and the lowest of $8563/mt. The trading volume was 21,000 lots, and open interest stood at 286,000 lots. SHFE 2404 copper opened at 69920 yuan/mt overnight and fell to a low of 69290 yuan/mt after rising to 69930 yuan/mt, closing at 69400 yuan/mt, down 0.72%. The trading volume was 24,000 lots, and open interest stood at 150,000 lots. On the macro front, due to the unexpected increase in the unemployment rate in the United States in February, the U.S. index plunged sharply, but then rebounded on the support of higher-than-expected non-farm payroll data. As a result, copper prices were suppressed. On the fundamentals, as of March 7, SMM copper inventories in major Chinese markets increased 26,600 mt from last Monday to 347,800 mt, and up 42,100 mt from last Thursday. This is up 179,500 mt from pre-CNY level. In terms of consumption, copper prices remain high, which continues to hit downstream consumption, and only necessary purchases are maintained. If copper prices fall, further recovery in consumption may be achieved. In terms of price, on the whole, the U.S. non-farm payrolls data for February is negative for copper prices, and copper prices are expected to be slightly under pressure.