Data: SHFE, DCE market movement (Sep 03)

SMM Morning Meeting Summary: Overnight, LME copper opened at $14,499/mt, hit a high of $14,505/mt right after the open, then copper prices trended downward throughout the session, hitting a low of $14,147/mt near the end of trading, and finally settled at $14,182.5/mt, down 4.25%. Trading volume reached 44,000 lots, and open interest stood at 273,000 lots, an increase of 1,345 lots from the previous trading day, reflecting increased positions by bears. Overnight, the most-traded SHFE copper 2610 contract opened at 108,500 yuan/mt, hit a high of 109,090 yuan/mt in early trading, then copper prices trended downward throughout the session, hitting a low of 108,350 yuan/mt near the end of trading, and finally settled at 108,360 yuan/mt, down 3.02%. Trading volume reached 127,000 lots, and open interest stood at 205,000 lots, a decrease of 29,600 lots from the previous trading day, reflecting reduced positions by bulls.

[SMM Analysis: Price Difference Between Copper Cathode Rod and Secondary Copper Rod Widens to 2,200 yuan/mt; Strong Orders Meet Losses as Rod Producers Turn Cautious] According to SMM data, the operating rate of secondary copper rod producers stood at 8.74% this week, down 5.29 percentage points WoW and down 13.93 percentage points YoY. Meanwhile, the average price difference between copper cathode rod and secondary copper rod was 1,948 yuan/mt, up 164 yuan/mt MoM. In addition, the average discount of secondary copper rod in Jiangxi against copper futures was 1,376 yuan/mt, widening by 478 yuan/mt MoM. Based on SMM's secondary copper rod sales gross profit model, the average weekly gross profit was 1,020 yuan/mt, down 93 yuan/mt MoM......