Initial Signs of Sino-US Trade Disputes; Intraday High Consolidation of Copper Futures [SMM Copper Futures Brief Review]

Published: Feb 5, 2025 18:23

Save

Recently, US economic data fell short of expectations, raising doubts in the market about the US Fed's policy outlook. The US dollar fluctuated, showing an overall downward trend. The US-China trade dispute resurfaced as US President Donald Trump signed an executive order on February 1 to raise a 10% tariff on goods imported from China. On the Chinese side, tariffs will be raised on certain imports originating from the US. A 15% tariff will be imposed on coal and liquefied natural gas, while a 10% tariff will be applied to crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. Today, London copper fluctuated, opening at $9,178/mt in the morning session. The intraday high briefly reached $9,204/mt before pulling back, with the lowest point dipping to $9,150/mt.

SMM, February 5: Recently, US economic data fell short of expectations, raising doubts about the US Fed's policy outlook. The US dollar fluctuated and overall showed a downward adjustment. Initial signs of trade disputes between China and the US emerged as US President Donald Trump signed an executive order on February 1 to raise a 10% tariff on goods imported from China. In response, China announced tariffs on certain US-origin imports, imposing a 15% tariff on coal and liquefied natural gas, and a 10% tariff on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. Today, LME copper fluctuated, opening at $9,178/mt in the morning session. It briefly reached an intraday high of $9,204/mt before pulling back to a low of $9,150/mt. During the afternoon trading session, LME copper prices hovered around $9,160/mt, with market sentiment remaining cautious. By the end of the Asian trading session, the latest LME copper quote stood at $9,161.5/mt, up $11/mt from the previous closing price, marking a 0.12% increase. Overall, LME copper fluctuated around the daily moving average, with its short-term direction remaining unclear. SHFE copper contract 2503 opened today at 75,350 yuan/mt, reaching an intraday high of 75,530 yuan/mt. However, it quickly declined due to bearish pressure and market digestion, ultimately closing at 75,290 yuan/mt, down 260 yuan/mt or approximately 0.35%. Trading volume slightly decreased compared to the previous trading day, registering 38,931 lots, while open interest increased slightly to 155,433 lots. In the spot market, price fluctuations across major regions were relatively mild. Spot prices in the Yangtze River and Shanghai regions showed slight increases, reflecting some support from the supply and demand fundamentals. Looking ahead, the market will continue to monitor US economic data and the US Fed's policy developments, particularly the upcoming employment and inflation data, which may further influence the US dollar's performance and global risk appetite. Domestically, with the delivery date approaching and a relatively tight spot supply situation, SHFE copper may experience a phase of reduced open interest. LME copper is expected to continue fluctuating within the $9,150-9,200 range, while SHFE copper is likely to stabilize within its support range. 》Subscribe to view SMM historical spot metal prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

Chile's Copper Output Drops 13.8% in April, Metal Production Also Falls

Chile is the world's largest copper-producing country. Data released on Friday by Chile's National Bureau of Statistics (INE) showed that the country's copper production in April declined 13.8% YoY.According to official data, Chile's copper production in April was 399,954 mt, compared with 464,056 mt in the same period last year. The production decline was mainly attributable to a high base in the same period last year and lower ore grades at major miners.In addition, metal products production fell 15.4% YoY, further dragging down the overall performance of the manufacturing sector.

12 hours ago

Codelco's Q1 2026 Profit Triples to $825M Despite 8% Drop in Copper Production

Codelco, one of the world's largest copper producers, released its earnings report on Friday. Benefiting from stronger copper prices, the company's pre-tax profit reached $825 million in Q1 2026, nearly tripling compared to the same period last year when it stood at $213 million. Codelco stated that the company's total copper production from January to March was 272,000 mt, down 8% compared to the same period last year.Codelco reported its Q1 2026 results. Market conditions for copper and various by-products improved during the quarter, but the company's own production declined.From January to March, the company's own copper mine production reached 272,000 mt of concentrates, down 8.1% compared to the same period in 2025.

12 hours ago

Commerzbank Forecasts Copper Prices to Reach $14,250 per MT by Mid-2027

Commerzbank expects copper prices to rise to $14,250 per mt by mid-2027.

12 hours ago