Supply remained low, but demand was weak, and copper prices faced upward resistance [SMM Morning Comment].

SMM March 28 News: Overnight, LME copper opened at $9,833/mt, reaching a high of $9,872/mt and a low of $9,808/mt, closing at $9,846.5/mt. The overall trend showed initial downward fluctuations followed by a rebound. The decline was 0.61%, with a trading volume of 26,000 lots and open interest of 311,000 lots. Overnight, the most-traded SHFE copper 2505 contract opened at 80,930 yuan/mt, reaching a high of 81,160 yuan/mt and a low of 80,550 yuan/mt, closing at 80,810 yuan/mt. The overall trend was downward fluctuations. The decline was 0.93%, with a trading volume of 84,000 lots and open interest of 223,000 lots. On the macro front, US data on Thursday showed a decline in initial jobless claims last week, but the market reaction was relatively small. The US dollar fluctuated on Thursday as the market speculated on the severity of the tariff measures to be announced by US President Trump next week, with uncertainty still unsettling the market. On the supply side, domestic social inventory destocking paused this week. Although east China maintained destocking, it was mainly due to reduced inflows. As of Thursday, March 27, SMM's mainstream copper inventory across the country slightly increased to 334,500 mt, marking the fourth consecutive week of weekly destocking. Next week, the arrival of imported copper and the increase in domestic copper production will both be limited, keeping the total supply at a low level. Demand side, affected by the recent high copper prices, downstream consumption has been weak, with sluggish market trading and declining spot premiums. Prices are expected to continue to fall tomorrow. Price-wise, with no macro positives and limited fundamental support, if domestic spot trading remains sluggish today, copper prices may continue to decline.