The rise of the US dollar suppressed copper prices, downstream consumption improved [SMM copper morning comment]

LME copper prices opened at $9881.5/mt and closed at $9902/mt overnight, a rise of 1.07%, with the low-end of $9852.5/mt the beginning high-end of $9913/mt. The trading volume was 21,000 lots, and open interest stood at 334,000 lots. The most active SHFE 2406 copper contract prices opened at 79470 yuan/mt and closed at 79720 yuan/mt last evening, up 0.56%, with the high-end of 79900 yuan/mt and the low-end of 79420 yuan/mt. Trading volumes stood at 38,000 lots and open interest stood at 177,000 lots. On the macro front, the dollar remained firm and rose, suppressing copper prices from falling overnight. Boston Fed President Collins said the economy needs to cool to achieve the 2% inflation target, and keeping interest rates stable for a longer period of time will slow economic growth. In addition, Egyptian sources said that the parties to the Gaza ceasefire negotiations reached significant consensus on some controversial issues. In terms of fundamentals, from the supply side, the inflow of imported copper is slow and the warehouse receipts are increasing. In terms of consumption, after the copper price fell, the enthusiasm of downstream to replenish stocks has increased. If the downward trend can be sustained, consumption may further improve. Overall, the strong US dollar has exerted some pressure on copper prices, but domestic demand expectations and supply concerns still provide bottom support for copper prices.