Pre-holiday poor consumption lowered overnight copper prices [SMM Copper Morning Comment]

Published: Feb 8, 2024 09:54

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LME copper prices opened at $8412/mt and closed at $8308/mt overnight, a drop of 1.11%, with the low-end of $8295/mt and the high-end of $8425.5/mt.

LME copper prices opened at $8412/mt and closed at $8308/mt overnight, a drop of 1.11%, with the low-end of $8295/mt and the high-end of $8425.5/mt. The trading volume was 21,000 lots, and open interest stood at 289,000 lots. SHFE 2403 copper opened at 68140 yuan/mt overnight and declined to a low of 67670 yuan/mt, closing at 67670 yuan/mt, down 0.59%. Trading volume was 19,000 lots, and open interest stood at 126,000 lots. On the macro front, copper prices have been under pressure due to the slightly higher U.S. dollar index and the lackluster domestic consumption before the Chinese New Year. In terms of fundamentals, in terms of consumption, on the last trading day before the Chinese New Year, most companies have closed, and there were almost no transactions in the market. On the whole, the supply side remained ample. In terms of price, overall, domestic demand is deserted before the holidays, which is expected to have a certain drag on copper prices.

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