LME copper prices closed at $8,275/mt last evening, up 0.39%. Trading volume was 14,000 lots and open interest stood at 256,000 lots. The most active SHFE 2306 copper contract finished at 65,060 yuan/mt overnight, up 0.35%. Trading volume was 34,000 lots and open interest stood at 184,000 lots.
On the macro front, the US dollar retreated from a five-week high on Monday as markets awaited news from Washington on how to resolve the debt ceiling issue, which could force the US government to default, raising concerns. The huge shocks in the financial market are transmitted to the real economy.
In terms of fundamentals, the import window has recently opened, and the inflow of imported copper has increased. This led to ample copper cathode supply. Since entering the second quarter, downstream purchases were relatively active when copper prices fell, but soon fell back due to the lack of domestic demand. It is expected that consumer demand is unlikely to be optimistic in the near future. Due to concerns about the economic recession, the market is more concerned about the US debt default. It is expected that copper prices will remain relatively low in the short term.
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