US Debt Ceiling Negotiations Deadlocked, SHFE, LME Copper Prices Closed Mixed, Prices to Move at Lows

LME copper prices closed at $8,604/mt last evening, up 0.41%. Trading volume was 13,000 lots and open interest stood at 250,000 lots. The most active SHFE 2306 copper contract prices finished at 67,200 yuan/mt last evening, down 0.3%. Trading volume was 21,000 lots, and open interest stood at 180,000 lots.

On the macro front, the U.S. dollar rose against most major currencies yesterday, as the market believes that there will be no immediate breakthrough in the U.S. debt ceiling negotiations. Investors seek a safe haven amid economic uncertainty while waiting for the release of U.S. inflation data for clues on the trajectory of interest rates. In terms of fundamentals, the market rebounded to around 67,500 yuan/mt yesterday, and the market still prefers low-priced supply. In the spot market, trading of standard-quality and high-quality copper was muted. Since the sharp drop in copper prices, downstream demand only increased sharply on the same day, and then fell back quickly.

Some companies had restocked sufficient inventory when prices were low, and the overall market transaction was sluggish amid poor strong. In addition, according to customs data released on Tuesday, China's copper imports in April fell 12.5% from a year earlier, showing that domestic consumption was not as good as expected. In terms of prices, the Federal Reserve did not say that the rate hike is over, but the choppy stock market and bond market put pressure on the Fed. It is necessary to pay attention to the US CPI data released this week. It is expected that copper prices will still hover at relatively low levels in the near future.

More popular news:

'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices

Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why

Rio Tinto Warns of Risks for Paying High Premiums for Lithium Mines after Plunging Lithium Prices Triggered Acquisition Rush

UBS Raises China GDP Growth Forecast, Sees Earnings from China Stock Market Soaring, RMB Appreciating

Sharp Output Cuts Led to Lithium Ore Shortages, High Import Prices Drove Lithium Salt Producers to Shut Down

US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters

Russia is Accelerating Technology to Become Top Liquefied Natural Gas Supplier by Tripling Exports By 2030

No Other Country can Replace China's Manufacturing Industry Including India

Global Manufacturing PMI in April Points to Greater Downward Pressure on Global Economy

SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged

SMM Daily Comments (May 9): Most LME Base Metals Closed Lower, SHFE Nickel Prices Plunge, Ferrous Metals Mostly Rose

A Bull Gold Market Has Just Begun 

JPMorgan: How to Invest Amid a Likely Recession? Investors are Turning to Gold and Tech Stocks

SMM Daily Comments (May 4): Coking Coal and Oil Prices Plunge, SHFE Nickel Soar, Gold Hit Record High

IMF Slashes Saudi Arabia GDP Growth 2023-2024, Saying the Country Can’t Achieve Budget Balance This Year unless International Oil Prices Surge to $81 per Barrel

JPMorgan Asset Management: US Treasury Bonds will Strengthen

CPCA: China Passenger Car Sales Increased In April

Fitch Ratings Raises Saudi Arabia IDR, Says World Bank Reason and High Dependence on Oil Remain a Weakness for the Country's Rating