SMM Copper Morning Comment: The U.S. dollar index fell and copper prices rose overnight

LME copper prices opened at $10321/mt and closed at $10282/mt in last evening trading, a gain of 2.05%, with the low-end of $10124/mt and the high-end of $10335/mt. Trading volume was 44,000 lots, and open interest stood at 337,000 lots. The most active SHFE 2407 copper contract prices opened at 82370 yuan/mt and finished at 82100 yuan/mt last evening, up 0.21%, with the low-end of 81270 yuan/mt and the end of 82880 yuan/mt. Trading volume was 95,000 lots, and open interest stood at 200,000 lots. On the macro level, the US CPI data for April showed that inflation resumed its downward trend and retail sales were unexpectedly flat last month, restoring market confidence that the Federal Reserve will cut interest rates in September. The US dollar index fell, which was bullish for copper prices. In terms of fundamentals, although some domestic refineries have been undergoing maintenance, social inventories and inventories in the hands of suppliers are both relatively high. In terms of consumption, due to the delivery of the SHFE front-month contract yesterday, there were few transactions in the market. If copper prices fall back, processing companies may be willing to accept goods, otherwise the market will maintain the status quo of on-demand replenishment. The copper prices will remain at high levels.