Macro Uncertainty Combined with Weak Consumption Drives Overnight Copper Prices Down [SMM Morning Comment on Copper]

SMM, January 23: Overnight, LME copper opened at $9,259.5/mt, briefly hitting a high of $9,264.5/mt at the start of trading. It fluctuated widely during the session, dipping to a low of $9,210/mt near the close, and slightly rebounded to settle at $9,235/mt, down 0.6%. Trading volume reached 13,000 lots, and open interest stood at 295,000 lots. Overnight, the most-traded SHFE copper 2503 contract opened at 75,580 yuan/mt, briefly hitting a high of 75,650 yuan/mt at the start of trading before fluctuating downward throughout the session. It dipped to a low of 75,390 yuan/mt near the close and slightly rebounded to settle at 75,490 yuan/mt, down 0.08%. Trading volume reached 14,000 lots, and open interest stood at 161,000 lots. Macro side, Trump vowed to impose tariffs on European imports without providing further details and threatened new tariffs on Russia if it fails to reach an agreement to end the Ukraine war. The market is concerned that Trump's policies could trigger trade tensions and increase market volatility. Oil prices pulled back to a one-week low on Wednesday, with copper prices following the decline. Fundamentally, as the Chinese New Year approaches, some traders have started their holidays early, and logistics have gradually paused, leading to a slowdown in downstream procurement. The market showed weak supply and demand. Price side, due to policy uncertainties, the market remained cautious, and copper prices are expected to fluctuate rangebound today.