US October Core PCE Data Meets Expectations, Copper Prices Decline Overnight [SMM Copper Morning Comment]

Overnight, LME copper opened and peaked at $9,046/mt, initially fluctuated downward to $8,985/mt, rebounded during the session, and finally closed at $9,018/mt, up 0.62%, with trading volume reaching 15,000 lots and open interest at 271,000 lots. The most-traded SHFE copper 2501 contract opened at 74,040 yuan/mt, initially dipped to 73,720 yuan/mt, and finally closed at 73,800 yuan/mt, down 0.2%, with trading volume reaching 27,000 lots and open interest at 153,000 lots. Macro front, data released on Wednesday showed that the US October PCE price index YoY growth rate rose to 2.3% from the previous 2.1%, while the MoM growth rate remained unchanged at 0.2%. Core PCE price index YoY growth rate slightly rose to 2.8% from the previous 2.7%, with the MoM growth rate also remaining unchanged at 0.2%. These data support recent comments from many US Fed officials that there is no urgency to cut interest rates as long as the labour market remains healthy and the economy continues to be strong. Supply side, with the import window remaining open and processing enterprises increasingly relying on imported sources due to export policies, imported sources are expected to support spot supply. Demand side, with the execution of long-term contracts ending, downstream actively seeks spot orders, leading to marginal growth in short-term demand and overall active trading. Price side, despite macro uncertainties, copper prices are expected to stabilize today with upward potential supported by consumption.