LME copper prices closed at $8,960/mt in overnight trading, up 1.2%. Trading volume was 13,000 lots and open interest stood at 252,000 lots. The most active SHFE 2303 copper contract finished at 68,570 yuan/mt overnight, a gain of 0.62%. Trading volume was 23,000 lots, and open interest stood at 146,000 lots.
The current market focus is on the upcoming U.S. CPI data, which will have an important impact on the U.S. interest rate hike strategy. The U.S. dollar index fell last night. In terms of fundamentals, as of Monday February 13, copper stocks in mainstream Chinese markets tracked by SMM increased by 3,400 mt from February 10 to 316,300 mt. The inventory growth fell due to the recovery of consumption and scarce arrivals of imported copper. Over the weekend, only Shanghai saw destocking, mainly due to the reduction in shipments from smelters to warehouses. The overall consumption did not increase significantly.
In terms of consumption, copper prices were fluctuating at high levels, and end-user demand did not pick up sharply as expected. The downstream buying interest was tepid. Copper prices have moved up due to a lower US dollar.

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