US Dollar Index Hit New Low, Copper Prices Rose Overnight [SMM Copper Morning Comment]

LME copper opened at $9,348/mt overnight, initially dipped to $9,344.5/mt, and then climbed all the way to a high of $9,453/mt near the close, before dropping slightly to close at $9,419.5/mt, up 1.31%. Trading volume reached 19,000 lots, and open interest was 280,000 lots. The most-traded SHFE copper contract 2410 opened at 75,240 yuan/mt, initially dipped to 75,140 yuan/mt, and then climbed all the way to a high of 75,580 yuan/mt near the close, before dropping slightly to close at 75,410 yuan/mt, up 0.64%. Trading volume reached 39,000 lots, and open interest was 164,000 lots. Macro side, driven by the prospect of an imminent rate cut by the US Fed, the US dollar index hit a new low, falling to its lowest point in over a year, which is bullish for copper prices. On the fundamentals, as the end-of-month long orders from traders have mostly been fulfilled and copper prices remain strong, downstream spot order demand is limited, with restocking mainly driven by rigid demand. Overall market activity is not high. It is expected that end-of-month consumption demand will not significantly improve, and attention should be paid to the subsequent copper price trend. In terms of prices, copper prices are expected to continue to rise.