Copper prices inched lower as market worried about consumption

LME copper prices opened at $8400/mt and closed with a drop of 0.68% at $8352/mt last evening, with the low-end of $8342/mt and the high-end of $8411.5/mt. Trading volume stood at 14,000 lots. Open interest stood at 264,000 lots. The most active SHFE 2310 copper contract prices opened at 69300 yuan/mt and finished at 68950 yuan/mt last evening, down 0.46%, with the low-end of 68950 yuan/mt and the high-end of 69350 yuan/mt. Trading volume was 27,000 lots, and open interest stood at 151,000 lots.

On the macro front, on September 18, local time, according to data released by the U.S. Department of the Treasury, the total U.S. national debt exceeded $33 trillion for the first time on September 18. In addition, the market expected that the Federal Reserve had reached the "last mile" of raising interest rates. However, soaring energy prices in August unexpectedly pushed inflation to rebound more than expected, and market expectations were shaken.

On Fundamentals, As of Monday September 18, SMM copper inventories across major Chinese markets stood at 110,800 mt, up 9,900 mt from last Friday and 26,100 mt higher from the same period last year. The increase in inventories in East China is mainly due to the continued arrival of imported copper. In South China, the arrivals of more domestic copper and weak consumer demand under the current high copper prices increased local inventories. In terms of consumption, there is some room for demand to pick up after the delivery.