SMM May 13 News: Overnight, LME copper opened at $9,533/mt. Prices initially fluctuated, reaching a high of $9,568/mt, before pulling back and touching a low of $9,471/mt. Prices then fluctuated and eventually closed at $9,502/mt, up 0.67%. Trading volume was 21,841 lots, and open interest was 291,224 lots. Overnight, the SHFE copper 2506 contract opened at 78,080 yuan/mt. Prices fluctuated initially, reaching a high of 78,190 yuan/mt during the session, before fluctuating downward and touching a low of 77,620 yuan/mt. Prices then fluctuated somewhat and eventually closed at 77,820 yuan/mt, down 0.27%. Trading volume was 39,435 lots, and open interest was 180,978 lots. On the macro front, on May 12, a joint statement was released following the China-US Geneva Economic and Trade Talks: both China and the US agreed to cancel 91% of tariffs and suspend the implementation of 24% of tariffs. Following the agreement between China and the US to reduce tariffs, market concerns about an economic recession eased, the US dollar index surged, and copper prices remained relatively firm, fluctuating at highs. On the fundamental front, copper prices fluctuated at highs. Although the price spread between futures contracts narrowed, it remained in a backwardation structure, and downstream procurement interest was low. As of Monday, May 12, SMM copper inventories in major regions across China increased by 3,000 mt WoW to 123,100 mt. Compared with the inventory changes from last Friday, inventories in various regions across the country were mixed. Total inventories were 277,000 mt lower than the 400,100 mt recorded in the same period last year. Overall, with the US dollar index remaining high, it is expected that there will be limited upside potential for copper prices today.
