US November PMI Data Hits Record High, Copper Prices Under Pressure [SMM Copper Morning Comment]

Last Friday evening, LME copper opened at $8,967.5/mt, initially dipped to $8,938/mt, then rose to an intraday high of $9,014/mt, and finally fluctuated widely to close at $8,972.5/mt, down 0.56%. Trading volume reached 19,000 lots, and open interest was 269,000 lots. Last Friday evening, the most-traded SHFE copper 2501 contract opened and dipped to 73,400 yuan/mt, initially rose to 73,950 yuan/mt, then fluctuated slightly, and finally closed at 73,730 yuan/mt, down 0.26%. Trading volume reached 32,000 lots, and open interest was 148,000 lots. Macro side, the US November S&P Global Manufacturing PMI preliminary value was 48.8, a four-month high. The US November S&P Global Services PMI preliminary value was 57, a 32-month high. The US November S&P Global Composite PMI preliminary reading was 55.3, a 31-month high. Currently, with persistent inflation, the market generally expects the US Fed to adopt more accommodative monetary policies. The US dollar is supported, and the US dollar index climbed to a nearly 13-month high, putting pressure on copper prices. Fundamentally, downstream stocking demand over the weekend led to noticeably active procurement, with market transactions better than expected. Meanwhile, due to the decline in copper prices, the operating rate of copper semis producers rebounded, providing support for spot premiums. Spot premiums are expected to stabilize this week. Price-wise, macro sentiment is bearish under the strong US dollar backdrop, with limited support from fundamentals. Copper prices still face resistance above and are expected to fluctuate downward today.