SMM Copper Morning Comment:U.S. inflation data rises, overnight copper prices come under pressure

LME copper prices opened at $8386.5/mt and closed at $8375/mt overnight, down 0.19%, with the highest of $8460/mt and the lowest of $8348/mt. Trading volume was 22,000 lots, and open interest stood at 278,000 lots. The most active SHFE 2402 copper contract prices opened at 68160 yuan/mt and closed at 67920 yuan/mt last evening, down 0.16%, with the high-end of 68300 yuan/mt and the low-end of 67820 yuan/mt. Trading volumes stood at 19,000 lots and open interest stood at 115,000 lots. On the macro front, the U.S. non-seasonally adjusted CPI recorded an annual rate of 3.4% in December and a monthly rate of 0.3%, exceeding expectations. Speak by Federal Reserve officials suppressed interest rate cut expectations. This is expected to weigh on copper prices. In terms of fundamentals, from the supply side, actual trading was weak after inventory increased, premiums continued to fall, and supply became ample. Overall consumption has not picked up significantly. As the weekend approaches, if copper prices continue to fall, consumption is expected to pick up to some extent. In terms of price, the timing of the Federal Reserve's interest rate cut is expected to be postponed, but bets on the extent of interest rate cuts throughout the year have increased. The downside space for copper prices is expected to be limited.