SMM Copper Morning Comment

LME copper prices opened at $8215/mt and closed at $8309/mt in last Friday trading, a gain of 0.83%, with the low-end of $8183.5/mt and the high-end of $8311.5/mt. Trading volume was 17,000 lots, and open interest stood at 263,000 lots. The most active SHFE 2312 copper contract prices opened at 67820 yuan/mt and finished at 67860 yuan/mt last Friday evening, up 0.09%, with the low-end of 67750 yuan/mt and the high-end of 67900 yuan/mt. Trading volume was 19,000 lots, and open interest stood at 131,000 lots.

On the macro front, Boston Fed President Collins said that he would not rule out the possibility of further interest rate increases; Chicago Fed President Goolsby believed that inflation has improved, but is still too high, and will make every effort to defeat inflation; San Francisco Fed President Daley reiterated that the Fed is not sure whether inflation can reach its 2% target and should remain patient in the face of economic uncertainty. SMM data showed that as of Friday November 17, copper inventory across major Chinese markets stood at 49,800 mt, down 4,700 mt from last Monday and down 6,500 mt from two Fridays ago. Inventories hit the lowest for the year. Although copper imports in East China increased last week, the amount put into storage was not large, and the price difference between Shanghai and Guangdong was large. Some supply sources were transferred from East China to South China, causing the overall inventory to decrease; inventories in South China increased slightly, mainly due to a slight increase in arrival volume and a decrease in downstream procurement volume. In terms of consumption, in the face of high water prices, demand will be restrained to a certain extent. In terms of prices, the Federal Reserve’s concerns over inflation still weighs on copper prices.