SMM Copper Market Morning Comment (Jul 3)

Overnight, LME copper opened at $9,708.5/mt, peaking at $9,749.5/mt, then declining to a session low of $9,654/mt, and finally closed at $9,660.5/mt, up 0.25%. Trading volume reached 15,000 lots, and open interest reached 325,000 lots. Overnight, the most-traded SHFE 2408 copper contract opened at 79,140 yuan/mt, surging to a session high of 79,380 yuan/mt, then hitting a session low of 78,770 yuan/mt, and finally closed at 78,770 yuan/mt, up 0.06%. Trading volume reached 49,000 lots, and open interest reached 197,000 lots. On the macro front, Fed Chairman Powell reiterated significant progress in reducing inflation, expecting the inflation rate to be around the mid-to-low level of 2% in a year, but refused to comment on the issue of a rate cut in September. The US dollar index was relatively weak, and copper prices closed higher. Fundamentally, imported copper continued to arrive, while sellers converted previous sources into warrants. Premiums rose, but trading was moderate, with relatively active trading in non-registered imported sources. Overall, copper prices are expected to fluctuate upward today.