SMM March 5 News: Overnight, LME copper opened at $9,355/mt, initially rising to a high of $9,416/mt during the session. It then fluctuated downward, hitting a low of $9,335/mt near the close, before the center lifted, ultimately closing at $9,387/mt, down 0.14%. Trading volume reached 18,000 lots, and open interest stood at 298,000 lots. Overnight, the most-traded SHFE copper 2504 contract opened at 76,980 yuan/mt, initially fluctuating to a high of 77,090 yuan/mt. It then fluctuated downward, hitting a low of 76,660 yuan/mt near the close, followed by sideways movement, and finally closed at 76,750 yuan/mt, down 0.52%. Trading volume reached 29,000 lots, and open interest stood at 163,000 lots. Macro side, Trump stated that Canada’s retaliatory tariffs on the US would immediately trigger equivalent counter-tariffs from the US. The EU strongly condemned the US tariffs on Canada and Mexico, while the Commerce Secretary suggested that Trump might compromise on tariffs with Canada and Mexico, potentially announcing exemptions today. Canada and Mexico have already announced countermeasures, and China has also imposed additional tariffs on US agricultural products. Concerns over tariffs and global trade resurfaced, but at the same time, the US dollar index continued to decline. Copper prices fluctuated rangebound with the center moving lower. Fundamentally, imported supplies have gradually decreased, and non-registered sources were highly favored. Copper prices fluctuated at highs, while downstream consumption recovery remained limited. In summary, with uncertainties surrounding tariffs and trade prospects, and the US dollar index continuing to fall below the 106 mark, copper prices are expected to fluctuate at highs today, with no significant decline anticipated.
