US ADP Employment Data Weakens, Copper Prices Rose Slightly Overnight [SMM Copper Morning Comment]

Overnight, LME copper opened at $9,913/mt, with the initial session low at $9,860/mt. It then fluctuated upwards, reaching a session high of $10,010/mt at the end of the trading session, and finally closed at $10,006.5/mt, with open interest at 342,000 lots. Overnight, the most-traded SHFE copper contract (2407) opened at ¥80,330/mt, initially fluctuating and hitting a session low of ¥80,090/mt, then rising to a session high of ¥80,940/mt at the end of the trading session, and finally closed at ¥80,720/mt, up by 0.2%. Trading volume stood at 63,000 lots and open interest at 177,000 lots. On the macro front, the US ADP non-farm payrolls for May recorded the smallest increase since January, increasing expectations for a rate cut, which supported copper prices. Meanwhile, the Bank of Canada cut rates for the first time in four years, becoming the first G7 central bank to cut rate , and said there is reason to expect further rate cuts. On the fundamentals, copper prices fell sharply together with the approaching Dragon Boat Festival holiday, which led to a partial recovery in downstream purchasing sentiment. Therefore, despite high inventory levels, premiums continued to rise slightly. Current end-user demand has not yet significantly recovered, but if copper prices fall below ¥80,000/mt, a noticeable recovery may be seen. Overall, copper prices continue to lack consumption support and are expected to maintain a fluctuating trend.