SMM Copper Market Morning Comment (Jul 23)

Overnight, LME copper opened and peaked at $9,269/mt, hitting a low of $9,172/mt during the session, and closed at $9,230/mt, down 0.58%. Trading volume reached 23,000 lots, and open interest reached 301,000 lots. Overnight, the most-traded SHFE 2409 copper contract opened at 75,390 yuan/mt, peaking at 75,530 yuan/mt in the early session, then declining to a low of 75,170 yuan/mt, and closed at 75,510 yuan/mt, down 0.93%. Trading volume reached 49,000 lots, and open interest reached 182,000 lots. Macro side, the International Copper Study Group stated a global surplus of refined copper, increasing market concerns. Bulls continuously closed positions and exited, leading to a continuous decline in copper prices. Fundamentals side, copper prices continuously fell, intensifying the wait-and-see sentiment among downstream buyers, and market transactions did not show a sustained increase. As of July 22, SMM copper stocks in major regions of China decreased by 16,400 mt compared to last Thursday, reaching 358,700 mt, marking the third consecutive week of destocking. Price side, under market concerns, copper prices were under pressure.