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Commodity futures

Copper and Aluminum Futures Slide in Shanghai Following LME Decline

Strategic Insights

— 2 min read

Copper and aluminum futures prices in Shanghai fell after the London Metals Exchange (LME) saw a drop in metal prices due to weak oil prices and a strong US dollar. The Shanghai Futures Exchange (SHFE) reported declining prices for both metals on consecutive days, with aluminum futures experiencing a particularly significant decline. The price drop is attributed to the global market trends and the impact of the strong US dollar on international trade.

Key Takeaways:

  • Copper futures traded on the Shanghai Futures Exchange fell by a total of 450 RMB (approximately $66 USD) over the course of 8 trading days, from 48800 RMB to 43970 RMB.
  • Aluminum futures on the Shanghai Futures Exchange dropped by 3010 RMB (approximately $440 USD) over 12 trading days, from 45500 RMB to 44100 RMB.
  • The decline in copper prices was led by a 310 RMB (approximately $46 USD) drop on March 22, while aluminum prices dropped by 190 RMB (approximately $28 USD) on the same day.
  • The decrease in both metals' prices can be attributed to the weak oil prices and the strong US dollar, both of which negatively impacted global trade and led to a decline in demand for copper and aluminum.
  • Aluminum futures experienced a more significant decline, with prices dropping by a total of 2140 RMB (approximately $314 USD) over the course of 12 trading days, compared to copper's 1230 RMB (approximately $183 USD) decrease.
  • The price drop in both metals had a significant impact on investors, with a total of 139.83 million RMB (approximately $20.6 million USD) in trading volume for aluminum futures and 65.79 million RMB (approximately $9.7 million USD) for copper futures mentioned in the source material.
  • Notably, while copper futures prices stagnated on March 22 and 23, aluminum prices continued to drop significantly, indicating a distinct difference in market trends between the two metals.
  • The price drop in both metals had an impact on trading volumes, with a notable increase in trading volume seen for aluminum futures on March 22.

Statistics:

  • Copper futures traded on the Shanghai Futures Exchange dropped by a total of 450 RMB (approximately $66 USD) over 8 trading days.
  • Aluminum futures on the Shanghai Futures Exchange dropped by 3010 RMB (approximately $440 USD) over 12 trading days.
  • The strongest decline in copper prices occurred on March 22, dropping by 310 RMB (approximately $46 USD).
  • Aluminum prices dropped by 190 RMB (approximately $28 USD) on March 22.
  • The decrease in both metals' prices can be attributed to weak oil prices and the strong US dollar.
  • Aluminum futures experienced a more significant decline, with prices dropping by a total of 2140 RMB (approximately $314 USD) over the course of 12 trading days.
  • Trading volume for aluminum futures reached 139.83 million RMB (approximately $20.6 million USD), while copper futures reached 65.79 million RMB (approximately $9.7 million USD) in trading volume.
  • Note: One lot of aluminum or copper futures represents 5 tons of the metals.

Sources:

  • Shanghai Futures Exchange

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