Post-Holiday Consumption Awaits Recovery, Copper Prices Expected to Struggle to Rise [SMM Morning Comment on Copper]

SMM February 6 News: Overnight, LME copper opened at $9,158.5/mt, with its center initially sinking amid fluctuations, bottoming at $9,124/mt. It then climbed steadily, peaking at $9,292/mt near the session's end and finally closing at $9,270/mt, up 1.05%. Trading volume reached 21,000 lots, and open interest stood at 280,000 lots. Overnight, the most-traded SHFE copper 2503 contract opened at 75,080 yuan/mt, with its center slightly declining initially and touching a low of 74,840 yuan/mt. It then fluctuated upward, peaking at 75,780 yuan/mt near the session's end and closing at 75,730 yuan/mt, up 0.56%. Trading volume reached 30,000 lots, and open interest stood at 157,000 lots. Macro side, the US January ISM Non-Manufacturing PMI recorded 52.8, significantly below expectations, while the US January ADP employment figure reached 183,000, the highest since October last year. US data showed mixed results, and the US dollar index continued to decline, maintaining low-level fluctuations, providing support for copper prices. Fundamentally, on the first trading day after the holiday, spot transactions were mediocre. Most downstream copper rod plants still had relatively sufficient inventories, with weak cargo pick-up willingness, leading to overall poor transactions. Additionally, many downstream enterprises are expected to resume operations around the Lantern Festival, and the market is still awaiting recovery. In summary, post-holiday consumption has not fully recovered, and copper prices are expected to lack sustained upward momentum today.