Copper Futures Drift Higher as Inflation Concerns Ease and Crude Oil Prices Decline [SMM Copper Morning Comment]

Published: Aug 4, 2026 09:14

Save

SMM, August 4: Overnight, LME copper opened at $13,866/mt, rose to a high of $13,884/mt in early trading before pulling back, hit a low of $13,808/mt, and rebounded towards the close to settle at $13,848/mt, up 0.33%. Trading volume was 16,900 lots, and open interest fell to 248,000 lots, down 2,157 lots from the previous session, as bears reduced positions. Overnight, the most-traded SHFE copper 2609 contract opened at 105,750 yuan/mt, hit an intraday high of 106,220 yuan/mt, a low of 105,610 yuan/mt, and settled at 106,190 yuan/mt, up 0.07%. Trading volume was 26,800 lots, and open interest fell to 202,100 lots, down 3,851 lots from the previous session, with bears reducing positions. On the macro front, US Fed’s Williams expressed optimism about gradually easing inflation, soothing market concerns over persistently high interest rates. On the geopolitical front, Trump said US-Iran negotiations are ongoing and the Strait of Hormuz may reopen on Tuesday, but Iran rejected the latest US proposal, leaving the progress of talks and the reopening timeline uncertain. On the fundamentals side, supply side, arrivals of domestic copper and imported copper cathode recently edged up, slightly easing the tightness in market supply. Demand side, high copper prices continued to weigh on production and purchase willingness among downstream enterprises, and with the traditional consumption off-season, downstream players mainly restocked on rigid demand, with overall purchase sentiment remaining weak. As of Monday, August 3, SMM copper inventories in major Chinese regions rose by 6,200 mt WoW to 118,900 mt. Total inventory was up 17,000 mt compared to the same period last year, when it stood at 135,900 mt, with performance varying across regions. Overall, copper prices are expected to consolidate and edge up today.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

City eWaste Expands US E-Scrap Franchise Network to 16 Locations

City eWaste has expanded its electronics-recycling franchise network to 16 locations across Tennessee and Texas, with further expansion planned in Georgia. Reusable equipment is resold, while remaining material is directed to secondary-metal markets or R2-certified recyclers.

1 hour ago

Codrus Moves to Acquire EdgeMet and Add Copper-Molybdenum Assets

Codrus Minerals has agreed to acquire EdgeMet, adding the Copperhole Creek project in Queensland and the Tiquihua copper-molybdenum project in Peru. Codrus is also seeking to raise up to A$2.5 million to fund the acquisition and exploration. Completion remains subject to shareholder approval.

1 hour ago

Jain Resource Commissions Full Copper Anode Line as Recycling Revenue Surges

Jain Resource Recycling reported Q1 FY27 consolidated revenue of INR27.25 billion, up 76% year on year, with copper and copper products contributing around 67% of revenue. Its entire 1,600-tonne-per-month copper anode line is now operational, while copper cathode, wire rod and busbar projects are scheduled for commissioning over the next two quarters. Its Ahmedabad copper-scrap joint venture has also entered trial production.

1 hour ago