MARKET COMMENTARY
3M LME copper traded in the range of $8427.5-$9174 in March. Copper prices started March with a gain, rising with the support of low level purchases after the PCE index in the USA was announced in line with the forecasts. China's state supported research institution Antaike announced that copper companies have agreed to accelerate the purchase and use of domestic scrap copper to increase raw material supply. Copper prices extended gains, supported by expectations of further supply disruptions after Antaike said China's leading copper smelters had reached an agreement to reduce operating rates, adjust maintenance plans and postpone new projects. Copper prices tested the 11-month high at $9174 and finished the month at $8872 with a 4.64% gain.
Copper prices fell to $8484.5 in the 10th week as investors were disappointed by the lack of new supportive measures at China's important political meeting. However, 3M LME copper finished the week at $8615.5 with a 0.54% gain after testing $8689, the highest level since January 31, on Friday, supported by the Central Bank's interest rate cut hopes, better-than-expected Chinese trade data and the weak dollar.
Copper prices rose for the 11th week ahead of a meeting of Chinese smelters. 19 Chinese smelters attended the meeting held in Beijing on March 13. The meeting took place after an unexpected supply squeeze in copper concentrate affected the profit margins of smelters. Antaike announced that copper companies have agreed to accelerate the purchase and use of domestic scrap copper to increase the supply of raw materials. Copper prices extended gains after Antaike said China's leading copper smelters had agreed to cut operating rates, adjust maintenance plans and postpone new projects. 3M LME copper tested the highest level since April 2023 at $9098 on March 15, supported by supply disruptions despite the rising dollar, and completed the week at $9074 with a 5.91% gain.
Although 3M LME copper rose to $9091 on March 21 due to the increased risk appetite after the Fed stated that it would stick to its interest rate cut plans for this year, it completed the 12th week at $8847 with a 2.50% loss due to the pressure of the strong dollar.
3M LME copper tested $8776, the lowest level since March 13, as investors awaited signs of recovery in demand in major metals consumer China, driven by lower buying and signs of stability in the Chinese economy after Chinese industrial profits improved in the first two months. It completed the 13th week at $8872 with a 0.28% gain.
