US Dollar Index Rose, Copper Prices Fell Overnight [SMM Copper Morning Comment]

LME copper opened at $9,212.5/mt overnight, initially reaching a high of $9,212.5/mt before fluctuating downward. It touched a low of $9,120/mt near the end of the session and finally closed at $9,120/mt, down 1.39%. Trading volume reached 15,000 lots, and open interest was 278,000 lots. The most-traded SHFE copper 2410 contract opened at 73,680 yuan/mt, initially reaching a high of 73,820 yuan/mt before fluctuating downward. It touched a low of 73,360 yuan/mt near the end of the session and finally closed at 73,520 yuan/mt, down 0.64%. Trading volume reached 44,000 lots, and open interest was 152,000 lots. Macro side, the latest US economic data was mixed, and the US dollar index rose, which was bearish for copper prices. The market needs more guidance, focusing on Fed Chairman Powell's speech on the economic outlook at the Jackson Hole Economic Symposium. Fundamentally, due to the continuous release of warrants, spot premiums/discounts declined. Downstream purchasing sentiment was decent yesterday, but some companies remained on the sidelines due to high copper prices. According to SMM, as of Thursday, August 22, copper stocks in major regions across China decreased by 5,400 mt from Monday to 283,500 mt, marking the seventh consecutive week of weekly destocking. Total inventory was 209,300 mt higher YoY compared to 74,200 mt last year. Price-wise, the downside for copper prices is expected to be limited.