US Fed's Continued Hawkish Remarks Put Pressure on Copper Prices Overnight [SMM Copper Morning Comment]

Overnight, LME copper opened at $9,656/mt, initially reaching a high of $9,656/mt before declining throughout the session. Approaching the end of the trading session, it hit a low of $9,536/mt and finally closed at $9,536/mt, down by 1.12%, with a trading volume of 19,000 lots and open interest of 327,000 lots. Overnight, the most-traded SHFE copper 2408 contract opened at 78,320 yuan/mt, reached a high of 78,400 yuan/mt during the session, then fluctuated downward, hitting a low of 78,000 yuan/mt near the end of the trading session, and finally closed at 78,010 yuan/mt, down by 1.03%, with a trading volume of 48,000 lots and open interest of 174,000 lots. On the macro front, US Fed Governor Bowman stated that there would be no rate cuts in 2024, pushing the timeline for rate cuts to 2025, and expressed willingness to hike rates if inflation progress stalls. A series of hawkish remarks from the US Fed led to a rise in the US dollar index, putting pressure on copper prices. On the fundamentals, copper prices fell at the beginning of the week, but downstream did not show strong restocking sentiment, remaining mostly in a wait-and-see mode, with average trading in the spot market. According to SMM, as of Monday, June 24, copper stocks in major regions nationwide decreased by 11,800 mt to 386,600 mt compared to last Friday, 298,900 mt higher YoY. In terms of prices, influenced by macro sentiment, copper prices are expected to face upward pressure.