SMM Copper Market Morning Comment (Apr 30)

Overnight, LME copper opened at $10,029.5/mt, with its low and high at $10,020/mt and $10,185/mt before closing at $10,162/mt, up 2.03%. Trading volume was 22,000 lots, and open interest was 339,000 lots. Overnight, the most-traded SHFE 2406 copper contract opened at 81,130 yuan/mt, with its low and high at 81,120 yuan/mt and 81,940 yuan/mt before closing at 81,930 yuan/mt, up 1.49%. On the macro level, concerns about the slowdown in US economic growth led to the weakening US dollar index, which is bullish for copper prices. Fundamentally, copper prices remain high this week and spot transactions have recovered, but the market holds a pessimistic outlook. Some companies have stopped production and reduced inventory. Although companies have a need to stock up before the holiday, long-term orders can basically meet the demand. As of April 29, SMM copper inventory in China's major regions was 387,900 mt, down 16,800 mt from last Thursday, and the total inventory increased by 219,800 mt from 168,100 mt in the same period last year. Copper prices are expected to remain high.