Domestic Copper Demand Remains Weak, Copper Prices Under Pressure Overnight [SMM Copper Morning Comment]

Last Friday evening, LME copper opened at $10,382/mt, hitting a session low of $10,316.5/mt before closing at $10,334/mt, a decrease of 0.24%. Trading volume reached 16,000 lots, and open interest was 348,000 lots. Last Friday evening, the most-traded SHFE copper contract opened at ¥83,750/mt. It initially rose to ¥84,170/mt before fluctuating widely, then declined to a session low of ¥83,450/mt before consolidating and closing at ¥83,490/mt, a decrease of 0.44%. Trading volume reached 50,000 lots, and open interest was 208,000 lots. On the macro front, US Fed Governor Waller indicated that factors driving down the neutral rate might reverse. If US fiscal supply starts to exceed demand, it will put upward pressure on the neutral rate. Concerns over maintaining high rates caused copper prices to drop slightly. On the fundamentals side, supply remains ample, with copper stocks in major domestic regions staying high. On the demand side, copper prices holding above ¥83,000/mt inhibited downstream purchasing sentiment, making a significant recovery in demand unlikely. Notably, due to copper prices hitting historical highs, some market participants reported that Grupo Mexico's mining company Asarco plans to resume operations at its idled copper smelters in the US. Overall, high interest rates combined with weak demand are putting pressure on copper prices.