High oil prices drive up copper prices, domestic demand is weak [SMM Copper Morning Comment]

LME copper prices opened at $8375/mt and closed at $8401.5/mt in last evening trading, a rise of 0.32%, with the low-end of $8367/mt and the high-end of $8428/mt. Trading volume was 17,000 lots, and open interest stood at 290,000 lots. The most active SHFE 2403 copper contract prices opened at 68020 yuan/mt and finished at 68120 yuan/mt overnight, down 0.01%, with the low-end of 67800 yuan/mt and the high-end of 68240 yuan/mt. Trading volume was 18,000 lots and open interest stood at 129,000 lots. On the macro front, the US dollar weakened slightly, while oil prices rose. In terms of fundamentals and consumption, we are entering the countdown to the Chinese New Year. More companies are closing for the Chinese New Year holiday, and market transactions tend to be quiet. In terms of price, on the whole, high oil prices and a slight weakening of the US dollar have driven copper prices higher. However, due to the continued suppression of expectations of interest rate cuts by Federal Reserve officials and the current weak demand, the upside space for copper prices is limited.