Copper Prices Rose Slightly [SMM Copper Morning Comment]

LME copper opened at $9,597/mt overnight, initially hitting a session low of $9,551/mt. It then rose throughout the session, reaching a high of $9,730.5/mt at the end of the trading session, and finally closed at $9,719/mt, with a gain of 0.26%. Trading volume reached 20,000 lots, and open interest reached 327,000 lots. The most traded SHFE 2407 copper contract opened at 77,800 yuan/mt overnight, initially hitting a session low of 77,760 yuan/mt. It then fluctuated higher throughout the session, reaching a high of 78,680 yuan/mt at the end of the trading session, and finally closed at 78,640 yuan/mt, with a gain of 0.11%. Trading volume reached 34,000 lots, and open interest reached 155,000 lots. On the macro front, U.S. retail sales data for May recorded 0.1%, lower-than-expected, with the previous value revised down to -0.2%. Expectations for a rate cut increased, and both natural gas and oil prices rose. Copper prices rose slightly, but gains were limited due to high inventory levels. Additionally, according to external sources on June 18, the head of Anglo American's Chile operations stated on Tuesday that copper production at the Los Bronces mine is expected to decrease by nearly one-third from historical average levels next year. On the fundamentals side, it is reported that some imported copper will arrive soon, and spot supply is expected to increase after the release of warrants. On the consumption side, although copper prices have fallen significantly, consumption is somewhat suppressed due to the small discount. If copper prices stabilize and the release of warrants continues to create an oversupply situation, premiums are expected to be under pressure, and just-in-time replenishment will increase. Overall, Anglo American's reduction in its flagship copper mine's production may provide some support for copper prices amid concerns.