SMM, September 28: Overnight LME copper closed lower, mainly driven by increased bearish positions; SHFE copper was closed for the Mid-Autumn Festival holiday. With macro expectations for interest rate hikes weighing on prices and supply tightness easing marginally, copper prices are expected to consolidate on a subdued note today.
1. Overnight futures
LME copper: Opened at $14,668.5/mt, hit a high of $14,691.5/mt and a low of $14,568.5/mt, and closed at $14,632/mt, down 0.1%. Trading volume was 10,000 lots, with open interest at 262,000 lots, up 419 lots from the previous trading day, driven by increased bearish positions.
The most-traded SHFE copper 2610 contract: Closed for the Mid-Autumn Festival holiday.
2. On the macro front
Trump is expected to hold more talks with Iran this week, and Iran has indicated it could reopen the Strait of Hormuz within seven days, easing geopolitical conflict risks. However, market expectations for US Fed interest rate hikes continued to build, capping the upside for copper prices.
3. Fundamentals
Supply side, some imported cargoes arrived, but overall arrivals were limited, and the tightness in available market supply eased marginally. Demand side, downstream pre-holiday stockpiling was largely completed, and market purchasing sentiment cooled.
