The most-traded April copper contract on the Shanghai Futures Exchange ended day trading 0.2% lower to 69,820 yuan ($10,120.31) a tonne. The gain came as higher-than-expected manufacturing and services data in China lifted sentiment among investors, who are also awaiting a key parliamentary meeting starting this Sunday.
That said, caution over actual market fundamentals remained. "While macro data such as very strong February manufacturing PMIs and more encouraging property sales indicate a broad-based uptick in economic activity, more copper-specific datapoints such as inventories, premiums and orderbooks paint a somewhat more muted recovery," analysts at J.P. Morgan Global Commodities Research said in a note. J.P.Morgan forecast copper prices ending this year around $9,100 before breaking above $10,000 in 2024 and averaging $9,850 for 2024 as a whole. Also weighing on the market was the dollar stance, which remained firm after a fresh set of data indicated the Federal Reserve will keep interest rates higher for longer, and concerns grew the United States may impose more sanctions on China.
A stronger dollar makes greenback-priced commodities more expensive to buyers holding other currencies. Global copper smelting activity declined in February despite a further rebound in activity in top refined metal producer China, data from satellite surveillance of metal processing plants showed on Thursday.
Copper inventories in SHFE warehouses fell 4.5% to 240,980 tonnes on Friday, the first decline recorded since Dec. 23. LME aluminium rose 0.6% to $2,413.50 a tonne, zinc gained 0.4% to $3,060, lead shed 0.4% to $2,118 and tin lost 0.5% to $24,450. SHFE aluminium was added 0.6% at 18,775 yuan a tonne, nickel fell 2.1% to 187,090 yuan, tin shed 3.5% to 199,500 yuan and zinc slipped 0.2% to 23,475 yuan. For the top stories in metals and other news, click or ($1 = 6.8990 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu, Nivedita Bhattacharjee and Janane Venkatraman)
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