US dollar index weakness supports copper prices, overnight LME copper closed up 0.64% [SMM copper morning comment]

Published: Aug 20, 2026 09:00

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SMM August 20: Overnight, LME copper opened at $13,890.5/mt, dipped to $13,875/mt in the early session, then saw its price center shift higher to test $14,058/mt before finally settling at $14,051.5/mt, up 0.64%. Trading volume reached 23,000 lots, and open interest stood at 261,000 lots, down 8,415 lots from the previous trading day, reflecting a reduction in bearish positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,020 yuan/mt, hit a high of 107,340 yuan/mt in the early session, then saw its price center shift lower and hit bottom at 107,010 yuan/mt before finally consolidating narrowly to settle at 107,230 yuan/mt, up 0.23%. Trading volume reached 25,000 lots, and open interest stood at 171,000 lots, down 4,636 lots from the previous trading day, reflecting a reduction in bearish positions. On the macro front, the US Treasury Department announced it will at least double the size of its long-term bond repurchase operations, and the news pushed the US dollar lower, offering support to copper prices. However, LME inventories continued to rise, still capping the upside for copper prices. Fundamentally, on the supply side, warrant cargoes were released into the market, keeping spot supply ample. On the demand side, the pullback in copper prices fueled restocking demand from downstream enterprises. Overall, copper prices today are expected to show a narrow and subdued consolidation pattern.

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