Guoxin Futures: Shanghai Copper closes higher in the final minutes, expecting a volatile and relatively strong trend.

Friday, Shanghai copper futures traded with a slight upward bias amid consolidation. Prices rose into the close, and the main contract added more than 19,000 lots in positions. As for the spot market, according to SMM data, on February 27, SMM’s benchmark for Grade 1 electrolytic copper averaged 101980 yuan/ton, up 185 yuan/ton from the previous trading day. The spot discount continued to widen, and market trading remained limited. In terms of demand, in the first week after the holiday, most cable manufacturers have resumed operations, but terminal end customers have been slower to return, so overall demand has not yet fully recovered. SMM expects that next week (February 27–March 5) the operating rate of copper cable production will increase by 30.64 percentage points month-on-month to 58.36%, which is up 1.25 percentage points year-on-year from the second week of last year’s resumption of production. At present, inventory-side pressure still limits the upside of copper prices. On the macro front, the third round of negotiations between the U.S. and Iran concluded, yielding “major progress,” and the next round of talks will be held soon. Looking further ahead, the peak-season demand outlook, expectations of favorable domestic policies, and the risk factors brought by geopolitical frictions still give copper prices potential upward momentum. Overall, it is expected that the Shanghai copper market’s consolidation with a slight upward bias will not change. Support around the 100000 yuan/ton level remains strong. Traders are advised to seize the adjustment window and build long positions on dips. (Guoxin Futures)