Funds are strong and copper prices rebound [SMM copper morning comment]

LME copper prices opened at $9794.5/mt and closed 0.64% higher at $9790/mt overnight, with the low-end of $9758.5/mt and the high-end of $9843/mt. Trading volume was 23,000 lots, and open interest stood at 335,000 lots. The most active SHFE 2102 contract prices opened at 79250 yuan/mt and closed at 79230 yuan/mt last evening, up 0.74%, with the high-end of 79690 yuan/mt and the low-end of 78930 yuan/mt. Trading volumes stood at 64,000 lots and open interest stood at 198,000 lots. Concerns about mine supply continue to provide support for copper prices. In addition, Ukrainian drones hit two Russian oil reserves, Israel said it was ready to launch Operation Rafah immediately and had already struck Hezbollah in southern Lebanon. Geopolitical conflicts also pushed up copper prices to a certain extent. The supply remains sufficient. In terms of consumption, the rebound in copper prices has caused spot trading to remain sluggish, and it is difficult to see any increase in downstream replenishment. If copper prices remain stable, consumption may improve. On the whole, the capital level remains strong, and copper prices are expected to rise in the near future. At the same time, Blinken has arrived in Shanghai, and we need to pay attention to the progress of the meeting between the two sides.