Copper prices continue to rise on strong market bullishness [SMM copper morning comment]

LME copper prices opened at $9990.5/mt and closed at $9960/mt in last Friday evening trading, a gain of 0.61%, with the low-end of $9896.5/mt and the high-end of $10012/mt. Trading volume was 27,000 lots, and open interest stood at 337,000 lots. The most active SHFE 2406 copper contract prices opened at 80810 yuan/mt and closed at 80580 yuan/mt last Friday evening, up 0.22%, with the high-end of 81060 yuan/mt and the low-end of 80090 yuan/mt. Trading volumes stood at 84,000 lots and open interest stood at 193,000 lots. On the macro level, the market continued to digest the news of BHP's acquisition of Anglo American. Although Anglo American expressed dissatisfaction with the offer price, it still strengthened the market's optimistic expectations for the future development of the copper market. In addition, copper prices rose sharply due to fund buying. In terms of fundamentals, from the supply side, after a sharp rise in copper prices, the SHFE/LME copper price ratio has remained poor and the inflow of imported copper has decreased. Although many domestic refineries have entered maintenance, there is currently no supply shortage in the market. In terms of consumption, copper prices have repeatedly surged, which has dealt a heavy blow to downstream purchases. But as the Labour Day holiday approaches, downstream companies have a need to replenish inventory. In terms of price, although the market is still optimistic about the copper market, the collapse of Republic First in the United States may trigger market concerns, and copper prices are expected to fall back to a certain extent.