Overnight Shanghai copper main contract closed up slightly, London copper rebound, now running at $8965.5 / ton. On the macro side, the Fed has to slow down the pace of interest rate hike due to the exposure of bank risks. It only raised interest rate by 25 basis points in March. The decision to raise interest rate in May will also be adjusted by the combination of financial risks, employment data and inflation. While Credit Suisse's woes eased, Deutsche Bank's credit swap spreads surged on Friday, raising fears of a wider banking crisis and the dollar index recovered. From the fundamental point of view, the supply side, since the beginning of March, the domestic inventory has turned a turning point, inventory depletion obviously supports spot premium, Shanghai copper front-month contract immediately converted to BACK structure.
As copper prices plummeted, domestic demand picked up spot premium, import window profit brought import copper incremental. On the demand side, as of Friday, March 24, the country's mainstream copper stocks fell 18,700 tons month-on-month from Monday to 200,000 tons, down 26,100 tons from Friday and only up 0.34 tons from pre-festival. The overall rate of copper industry has risen, into the traditional peak season of production consumption will be further higher, copper rate will be further lifted.
