SHFE copper night session closes higher, tight spot cargo supports the market [SMM Copper Morning Comment]

SMM, September 23: Overnight, LME copper opened at $14,782.5/mt. It drifted higher in early trading to a high of $14,799/mt, then the center of copper prices drifted lower to $14,728/mt, before drifting higher again and finally closing at $14,783/mt, up 0.81%. Trading volume reached 20,500 lots, and open interest reached 264,000 lots, down 3,223 lots from the previous trading day, indicating bears reduced positions. Overnight, the most-traded SHFE copper 2610 contract opened and hit a high of 111,840 yuan/mt, then drifted lower to a low of 111,490 yuan/mt, before moving sideways and finally closing at 111,610 yuan/mt, up 0.35%. Trading volume reached 22,600 lots, and open interest reached 142,300 lots, down 4,459 lots from the previous trading day, indicating bears reduced positions. On the macro front, US and Iranian officials held a productive meeting. Trump said they would meet again soon and believed an agreement could be reached after the midterm elections; Iran proposed conditions for reopening the strait, including lifting the blockade and unfreezing assets. Saudi Arabia restarted the east-west pipeline and resumed exports from Yanbu, and Asian refiners received assurances from Saudi Arabia that they could lift cargoes soon. Crude oil prices continued to drift lower, easing inflationary pressure. Coupled with tight domestic spot supply, this provided support for copper prices. Fundamentals: On the supply side, available cargoes remained tight, suppliers held back from selling, import arrivals were limited, and overall supply is tight. On the demand side, pre-holiday stocking demand remained, but downstream buyers were less willing to chase higher prices, with purchases mainly driven by rigid demand. Overall, copper prices were expected to maintain a fluctuating trend and hold up well today.