Copper prices rose on domestic macroeconomic support [SMM copper morning comment]

Published: May 20, 2024 10:05

Save

LME copper prices opened at $10482.5/mt last Friday evening before reaching a low of $10470/mt and a high of $10720/mt, and closed at $10715/mt, a rise of 3.31%. Trading volumes were 33,000 lots and open interest stood at 341,000 lots. The most active SHFE 2407 copper contract prices opened at 84530 yuan/mt and finished at 85270 yuan/mt overnight, up 2.38%, with the low-end of 84420 yuan/mt and the high-end of 85430 yuan/mt. Trading volume was 93,000 lots and open interest stood at 229,000 lots. On the macro level, in order to lower the threshold for residents to buy houses, the People's Bank of China (PBOC) issued three notices in a row, canceling the national floor policy on interest rates for commercial personal housing loans for the first and second homes, lowering the interest rate on personal housing provident fund loans by 0.25 percentage points, and adjusting the minimum down payment ratio for commercial personal housing loans for the first home to no less than 15%, and for the second home to no less than 25%. In terms of fundamentals, as copper prices continued to rise, the purchasing demand of processing companies was suppressed and market activity remained low. After the subsequent warehouse receipts are released, the spot supply will be more abundant, and it is expected to continue to impact the premiums and discounts. Due to the influence of macro sentiment, copper prices will move at highs in the near future.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 23:56

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

Feb 6, 2026 23:56

Feb 6, 2026 23:54

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

Feb 6, 2026 23:54

Feb 6, 2026 23:47

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

Feb 6, 2026 23:47