US Dollar Decline Boosted Copper Prices, Domestic Copper Cathode Continued Destocking [SMM Copper Morning Comment]

LME copper opened at $9,543.5/mt overnight. After a slight initial fluctuation, it peaked at $9,572.5/mt and then declined to a low of $9,477/mt. It later rebounded slightly and closed at $9,539/mt, up 1.48%. The trading volume was 28,000 lots, and open interest was 271,000 lots. The most-traded SHFE copper 2410 contract opened at 75,910 yuan/mt, peaked at 76,000 yuan/mt initially, then declined to a low of 75,430 yuan/mt, and finally consolidated to close at 75,660 yuan/mt, up 1.03%. The trading volume was 36,000 lots, and open interest was 136,000 lots. Macro-wise, following the long-anticipated US Fed rate cut, the US dollar index declined. Additionally, data released by the US Department of Labor on Thursday showed that initial jobless claims unexpectedly recorded 219,000 last week, the lowest since the week of May 18, 2024, reducing recession expectations and boosting copper prices. On the fundamentals, after the most-traded contract shifted to 2410, downstream restocking enthusiasm was high, with overall demand relatively strong. However, supply was tight in some regions, causing downstream concerns about future arrivals. As of Thursday, September 19, SMM copper inventory in major regions stood at 192,600 mt, down 24,300 mt WoW, marking the 11th consecutive week of destocking, with destocking accelerating. The inventory hit a new post-Chinese New Year low. Overall, copper prices are expected to fluctuate at highs today.