Strengthening US Dollar Pressures Copper Prices, Market Consumption Slightly Mediocre [SMM Copper Morning Comment Dec 16]

Last Friday evening, LME copper opened at $9,100/mt, fluctuated at high levels initially, and peaked at $9,113/mt. It then declined throughout the session, hitting a low of $9,036/mt, with the center rebounding slightly by the close, ultimately settling at $9,056.5/mt, down 0.17%. Trading volume reached 15,000 lots, and open interest stood at 270,000 lots. Last Friday evening, the most-traded SHFE copper 2501 contract opened at 74,680 yuan/mt, peaked at 74,870 yuan/mt in early trading, and then declined throughout the session, hitting a low of 74,310 yuan/mt by the close. The center rebounded slightly, ultimately settling at 74,350 yuan/mt, down 0.51%. Trading volume reached 24,000 lots, and open interest stood at 142,000 lots. Macro side, the strengthening US dollar pressured copper prices downward. Domestically, the China Securities Regulatory Commission stated its firm commitment to stabilizing the real estate and stock markets and ensuring the stability of the capital market. Meanwhile, multiple departments, including the Ministry of Housing and Urban-Rural Development and the Ministry of Finance, issued statements forecasting favorable policies for the future. Fundamentally, low-priced imported copper continued to flow into the market, suppressing premiums and discounts. Additionally, copper rod enterprises gradually consumed their orders on hand last week. Approaching year-end, most enterprises are likely to focus on collecting payments and closing accounts, leading to slightly mediocre overall consumption. Today marks the last trading day for the SHFE copper 2412 contract, and consumption is expected to cool further. In summary, with multiple departments voicing support for favorable future policies, copper prices are expected to find some support today.