SMM Morning Comment For Copper Market On January 30

SHANGHAI, January 30 (SMM) –
LME copper opened at $8507/mt overnight, with its session low and high at $8507/mt and $8590/mt before closing up 0.57% at $8578/mt. Trading volume was 16,000 lots, and open interest was 281,000 lots. SHFE 2403 copper contract opened at 68900 yuan/mt overnight, with its session low and high at 68870 yuan/mt and 69190 yuan/mt before closing up 0.29% at 69170 yuan/mt. Trading volume was 17,000 lots, and open interest was 151,000 lots. On the macro front, the U.S. Treasury Department lowered its estimate of net borrowing from January to March to $760 billion from the $816 billion announced at the end of October, and U.S. bond yields fell. There was limited macro news at home and abroad yesterday, and the market paid more attention to this week's Federal Reserve interest rate decision. In terms of fundamentals, from the supply side, imported copper will arrive one after another this week. With weak demand, supply is expected to become increasingly loose. According to SMM data, as of Monday January 29, copper inventories in mainstream regions across the country increased by 6,800 tons from last Friday to 92,000 tons. Except for a slight decrease in Shanghai, inventories in other regions increased. From the perspective of consumption, some downstream companies have closed for CNY holiday last week, and more companies will take a break this week. With copper prices at high levels, consumption is expected to weaken further. It is expected that there will be limited room for continued rise in copper prices amid soft consumption.