Market Concerns Ease, Copper Prices Rebound Overnight [SMM Copper Morning Comment]

SHANGHAI, August 7 (SMM) –Overnight, LME copper opened at $8,802.5/mt, initially dipped below $8,802.5/mt, then fluctuated upwards, reaching a high of $8,939/mt near the end of the trading session, and finally closed at $8,923/mt, up by 0.77%. Trading volume reached 21,000 lots, and open interest reached 292,000 lots. Overnight, the most-traded SHFE copper 2409 contract opened at 70,850 yuan/mt, initially dipped below 70,850 yuan/mt, rose during the session, reaching a high of 71,970 yuan/mt, consolidated at the end of the trading session, and finally closed at 71,810 yuan/mt, up by 0.9%. Trading volume reached 68,000 lots, and open interest reached 171,000 lots.

Macro-wise, the US Fed indicated that the threshold for an emergency rate cut is very high, and the Fed will debate in September whether to cut rates by 50 basis points. Global market concerns about the economy have eased, and copper prices have rebounded along with the financial markets, but market participants remain cautious.

Fundamentals-wise, copper prices have significantly declined, prompting many end-users to release orders, stimulating a demand recovery. However, due to the large drop in copper prices, some smelters have a lower willingness to sell. Overall, copper prices remain the most crucial factor affecting demand, and the market is watching whether copper prices will continue to decline. In terms of prices, the market maintains a cautious attitude, and copper prices are unlikely to sustain a significant rebound.