Copper prices consolidate and pull back domestically and internationally as a stronger US dollar weighs on copper [SMM Copper Morning Comment]

SMM, September 24: Overnight, LME copper opened at $14,697.5/mt, hit a high of $14,708/mt in early trading, then drifted lower to $14,563.5/mt near the end of the session, and finally settled at $14,615.5/mt, down 1.13%. Trading volume reached 19,700 lots, and open interest stood at 263,900 lots, down 137 lots from the previous trading day, reflecting long liquidation. Overnight, the most-traded SHFE copper 2610 contract opened at 110,790 yuan/mt, rose to 111,160 yuan/mt in early trading, then the price center dropped sharply to a low of 110,560 yuan/mt, followed by wild swings before settling at 110,770 yuan/mt, down 0.5%. Trading volume reached 23,700 lots, and open interest stood at 123,500 lots, down 6,559 lots from the previous trading day, reflecting long liquidation. On the macro front, divisions emerged within Iran over engagement with the US. Tasnim News Agency reported that the foreign minister's contact with the US special envoy was unauthorized and a "mistake"; Rubio said the UN General Assembly talks made no breakthrough and negotiations still need time. Iran said it is in no rush to negotiate, that opening the Strait of Hormuz requires its conditions to be met, and warned neighboring countries not to comply with US restrictions on airlines; Tehran is evaluating the US response to its UN General Assembly proposal. The Iranian president stressed at the UN General Assembly that it will not accept threats from major powers, and the US representative walked out midway. The preliminary US S&P Global manufacturing PMI for September came in at 57, stronger than expected, with US Treasury yields strengthening and the US dollar rising, weighing on copper prices. Fundamentals side, available supply remained tight, with limited import replenishment, but suppliers' willingness to sell increased, and some warrant cargoes flowed into the spot market. Overall supply remained tight but showed marginal loosening. Demand side, high premiums suppressed downstream purchases, wait-and-see sentiment intensified, and procurement was mainly need-based, with overall demand remaining weak. In summary, copper prices are expected to consolidate on a subdued note in a narrow range today.