SMM Copper Market Morning Comment (Jul 30)

LME copper opened at $9,076/mt overnight, initially reaching a high of $9,077/mt before hitting a low of $8,984/mt. By the end of the trading session, it had slightly rebounded, closing at $9,025/mt, down 0.53%. Trading volume reached 16,000 lots, and open interest was 289,000 lots. Overnight, the most-traded SHFE 2409 copper contract opened at 73,700 yuan/mt, initially experiencing slight fluctuations. It then moved slightly higher before hitting a session low of 73,470 yuan/mt. By the end of the session, it rebounded, reaching a high of 74,010 yuan/mt, and closed at 73,880 yuan/mt, up 0.63%. Trading volume reached 56,000 lots, and open interest was 174,000 lots. Macro side, the market is awaiting interest rate decisions from the US, UK, and Japan this week, which will provide further guidance. Currently, copper prices are pressured by weak demand and high inventories. Fundamentals side, as copper prices declined and the end of the month approaches, sellers held prices firm, resulting in low overall market activity. As of Monday, July 29, SMM copper stocks in major regions decreased by 6,300 mt from last Thursday to 351,200 mt, but total stocks were still 251,600 mt higher than 99,600 mt in the same period last year. Overall, high overseas inventories continued to suppress copper prices. Before the interest rate decisions from the three countries are announced, the market is expected to remain cautious, and copper prices are likely to stay at low levels.