SMM Copper Morning Comment July 11: Copper Prices Remain High as Market Awaits Upcoming US CPI Data

Overnight, LME copper opened at $9,822.5/mt, dipped lower than $9,822.5/mt, then fluctuated upwards to a high of $9,933/mt, before falling back at the end of the trading session to close at $9,858/mt, down 0.17%. Trading volume reached 16,000 lots, and open interest reached 333,000 lots.
Overnight, the most-traded SHFE copper 2408 contract opened at 79,970 yuan/mt, hit a high of 80,280 yuan/mt at the beginning of the session, fluctuated widely during the session, and fell back to a low of 79,920 yuan/mt at the end of the session, finally closing at 80,020 yuan/mt, up 0.19%. Trading volume reached 32,000 lots, and open interest reached 195,000 lots.

Macro side, as Powell did not dampen market expectations of a rate cut, the US dollar index declined, which was bullish for copper prices. Additionally, the continuously decreasing COMEX inventories also raised market concerns. Fundamentals, copper price was lower than the previous day, with some downstream producers seizing the opportunity to restock, leading to an increase in procurement, though the increase was limited. The market is awaiting the upcoming US CPI data, and it is expected that the center of copper prices will not change significantly.