Overnight, LME copper opened at $10,023/mt, hit a session low of $9,998.5/mt at the beginning, then climbed all the way to a session high of $10,159/mt at the end of the trading session, and finally closed at $10,145.5/mt, with a gain of 1.39%. Trading volume reached 14,000 lots, and open interest reached 333,000 lots. Overnight, the most-traded SHFE copper contract opened at 81,510 yuan/mt, hit a session low of 81,300 yuan/mt at the beginning, then rebounded and hit a session high of 82,230 yuan/mt at the end of the trading session, and finally closed at 82,040 yuan/mt, with a gain of 1.38%. Trading volume reached 50,000 lots, and open interest reached 175,000 lots. On the macro front, the European Central Bank cut interest rates by 25 basis points for the first time since 2019 and raised inflation expectations, driving copper prices higher. However, after the ECB rate cut, the strong performance of the US dollar together with demand concerns limited the rise in copper prices. On the fundamentals, approaching the Dragon Boat Festival holiday, there was some pre-holiday stockpiling by downstream buyers, but overall procurement did not significantly rebound. Meanwhile, imported copper continued to arrive. As of Thursday, June 6, SMM copper stocks across national mainstream markets increased by 1,900 mt from Monday to 450,700 mt, up 7,200 mt from last Thursday, continuously refreshing the yearly high, but the growth rate began to slow down. Overall, the market may be boosted by rate cut expectations, and copper prices are expected to remain high. Today, the market will focus on the US non-farm payrolls report for May to be released in the evening.


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