SMM Copper Market Morning Comment (Jul 9)

Overnight, LME copper opened at $9,965/mt, initially reaching a high of $10,000/mt, then reaching a low of $9,909/mt, and finally closed at $9,917/mt. Trading volume reached 17,000 lots, and open interest reached 326,000 lots. Overnight, the most-traded SHFE 2408 copper contract opened at 80,470 yuan/mt, initially reaching a high of 80,650 yuan/mt, then reaching a low of 80,020 yuan/mt, and finally closed at 80,170 yuan/mt, down 0.24%. Trading volume reached 39,000 lots, and open interest reached 198,000 lots. On the macro front, the latest survey from the New York Fed showed that the median one-year-ahead inflation expectations in the US for June fell from the previous value of 3.17% to 3.02%, marking the second consecutive month of decline, with the US dollar index running at a low level. Fundamentally, as copper prices remained high, downstream procurement remained cautious, with spot premiums facing pressure. According to SMM, as of Monday, July 8, SMM copper stocks in major regions nationwide decreased by 11,800 mt compared to last Thursday to 398,000 mt, with total stocks 272,400 mt higher than 125,600 mt in the same period last year. In terms of prices, the market is still waiting for more guidance, and copper prices are expected to maintain wide fluctuations at high levels.