SMM Copper Market Morning Comment (Jun 25)

Overnight, LME copper opened at $9,673/mt, reaching a high of $9,728/mt, then touching a low of $9,640.5/mt, and finally closed at $9,644/mt, down 0.37%. Trading volume reached 14,000 lots, and open interest reached 323,000 lots. Overnight, the most-traded SHFE copper 2408 contract opened at 78,740 yuan/mt, reaching a high of 78,340 yuan/mt, then touching a low of 79,130 yuan/mt, and finally closed at 78,800 yuan/mt, up 0.04%. Trading volume reached 35,000 lots, and open interest reached 171,000 lots. On the macro front, several US Fed officials delivered speeches, but there is still no clear conclusion on when the Fed will cut interest rates. Additionally, LME Asian inventories continued to increase, putting pressure on copper prices. On the fundamentals side, downstream demand weakened again as copper prices rebounded, forcing suppliers to sell at low prices, but downstream buyers mainly restocked based on rigid needs. Furthermore, imported copper is expected to concentratedly arrive at ports by the end of June, which is anticipated to have some impact on the spot market. Overall, the weak demand is unlikely to change in the short term, while spot supply remains ample. Copper prices are expected to maintain wide fluctuations.