US Dollar Index Declined, Copper Prices Rose Overnight [SMM Copper Morning Comment]

Last Friday night, LME copper opened at $9,085/mt, briefly fluctuated at the beginning of the session, then dipped to $9,047/mt. It subsequently climbed throughout the session, reaching a high of $9,177.5/mt by the end and closing at $9,177.5/mt, up 0.43%. Trading volume reached 17,000 lots, and open interest was 285,000 lots. Last Friday night, the most-traded SHFE copper 2409 contract opened at 73,410 yuan/mt, dipped to 72,980 yuan/mt at the beginning, and then fluctuated upwards throughout the session, reaching a high of 73,850 yuan/mt by the end and closing at 73,790 yuan/mt, up 0.24%. Trading volume reached 44,000 lots, and open interest was 150,000 lots. Macro-wise, last Friday, the total number of housing starts in the US for July hit its lowest level since May 2020, causing the US dollar index to decline. Meanwhile, market expectations for a rate cut by the US Fed in September increased, which was bullish for copper prices. In terms of supply, although social inventories of copper cathode continued to decrease, the inflow of imported copper into the domestic trade market will provide some replenishment. On the demand side, the market holds a certain level of optimism for future demand. Facing rising copper prices, there has been some restocking activity, but the future trend of copper prices still needs to be monitored. Price-wise, attention should be paid to this week's Jackson Hole Economic Symposium, as copper prices are expected to have some upward potential.