LME Copper and SHFE Copper Both Declined in the Night Session; Spot Trades Sluggish Under High Contango Structure [SMM Copper Morning Comment]

SMM February 18 News: Overnight, LME copper opened at $9,398.5/mt, initially bottomed out at $9,379.5/mt during fluctuations, then the center rose, reaching a high of $9,425.5/mt during the session. It then maintained slight fluctuations before declining again at the close, ultimately settling at $9,382.5/mt, down 0.87%. Trading volume reached 15,000 lots, and open interest stood at 300,000 lots. Overnight, the most-traded SHFE copper 2503 contract opened at 76,740 yuan/mt, initially bottomed out at 76,680 yuan/mt, then the center moved higher, reaching a high of 77,030 yuan/mt during the session. Towards the close, the center declined and consolidated sideways, finally settling at 76,860 yuan/mt, down 0.81%. Trading volume reached 22,000 lots, and open interest stood at 169,000 lots. Macro side, US Fed's Harker stated that the current economic conditions support temporarily maintaining stable interest rate policies, while Bowman mentioned that stronger confidence in declining inflation is needed before cutting interest rates again. Inflation is expected to decline, but upside risks remain. The US dollar index remained stable, and after contract rollover, copper prices shifted lower. Fundamentally, under the high contango structure, suppliers actively engaged in buying and selling, while the spot market remained inactive. Downstream processing enterprises are still expecting further declines in copper prices. Overall, with the US dollar index fluctuating at low levels and major domestic meetings gradually unfolding, copper prices are expected to find support at the bottom today.