SMM Copper Morning Comment July 12: LME copper inventories continue to increase, weighing on copper prices 

Overnight, LME copper opened at $9,866.5/mt, initially rose to $9,896.5/mt, then fluctuated downward, hitting a low of $9,764/mt at the end of the trading session, and finally closed at $9,777.5/mt, down 0.82%. Trading volume reached 19,000 lots, and open interest reached 333,000 lots.
Overnight, the most-traded SHFE copper 2408 contract opened at 79,780 yuan/mt, initially rose to 79,780 yuan/mt, then fell to 79,050 yuan/mt during the session, and finally consolidated at the end of the trading session, closing at 79,140 yuan/mt, up 1.09%. Trading volume reached 48,000 lots, and open interest reached 195,000 lots.

LME inventories continued to increase, accumulating to 207,000 mt as of Thursday, the highest since October 2021, raising market concerns about demand prospects and weighing on copper prices. Fundamentals side, with the upcoming futures deliveryk, market activity has decreased, and downstream stocking enthusiasm is not high. According to the SMM survey, as of Thursday, July 11, SMM copper stocks in major regions nationwide decreased by 9,400 mt from Monday to 388,600 mt, up 117,000 mt YoY. In the off-season for demand, copper prices are under pressure.