Geopolitical conflicts intensify, the US dollar index weakens, and copper prices remain high [SMM Copper Morning Comment]

LME copper prices opened at $9467/mt and closed at $9427/mt last evening, down 0.17%, with the highest of $9523/mt and the lowest of $9380/mt. The trading volume was 34,000 lots, and open interest stood at 323,000 lots. The most active SHFE 2406 copper contract prices opened at 76720 yuan/mt and finished at 76430 yuan/mt last evening, up 0.17%, with the low-end of 76060 yuan/mt and the high-end of 77040 yuan/mt. Trading volume was 84,000 lots, and open interest stood at 198,000 lots. Atlanta Fed President Bostic reiterated his expectation of one rate cut this year. In addition, the Israeli president reiterated that nothing can stop the action to eliminate Hamas, and Iran's counterattack may have entered the countdown, and the risk of intensified conflict has escalated again. Before the release of US inflation data, the US dollar index performed weakly, which bolstered copper prices. In terms of fundamentals, from the supply side, there has been a certain increase in domestic goods arrivals. In terms of consumption, the widening of the price spread between front-month and next-month contracts and the approaching delivery have led to a slight increase in transaction volume, but terminal consumption is still sluggish and the downstream desire to replenish stocks has rarely improved. Overall, inventories may continue to rise. On the whole, the weak performance of the US dollar has given copper prices additional impetus, and it is unlikely to see a decline in the short term.