US Dollar Index Continued to Decline, Copper Prices Rose Overnight [SMM Copper Morning Comment]

Overnight, LME copper opened at $9,244/mt, briefly rose to $9,277/mt at the beginning of the session, then fluctuated downward to a low of $9,203/mt, and finally rebounded to close at $9,260/mt, up 0.9%. Trading volume reached 17,000 lots, and open interest reached 286,000 lots. Overnight, the most-traded SHFE copper 2409 contract opened at 74,050 yuan/mt, briefly touched 74,270 yuan/mt at the beginning of the session, then fluctuated downward to a low of 73,870 yuan/mt, and finally rebounded to close at 74,030 yuan/mt, up 0.54%. Trading volume reached 26,000 lots, and open interest reached 144,000 lots. Macro side, speeches by US Fed officials have strengthened market expectations for a rate cut starting in September, leading to a decline in the US dollar index, which is bullish for copper prices. Additionally, the continuous decline in China's copper cathode stocks has stimulated market expectations for improved demand. Fundamentally, the upward trend in copper prices has prompted downstream enterprises to restock, increasing consumption demand. As of Monday, August 19, SMM copper stocks in national major regions decreased by 12,700 mt from last Thursday to 288,900 mt, with total stocks up 216,000 mt YoY from 72,900 mt. In terms of prices, copper prices are expected to continue to rise.