US Dollar Index Remains High, Weak Consumption Pressures Copper Prices Overnight [SMM Copper Morning Comment]

SMM, December 31: Overnight, LME copper opened at $8,961.5/mt, briefly hitting a high of $8,966/mt at the start of trading before fluctuating downward, reaching a low of $8,905.5/mt during the session. It then rebounded slightly towards the close, ultimately settling at $8,933.5/mt, with open interest at 262,000 lots. Overnight, the most-traded SHFE copper 2502 contract opened at 73,960 yuan/mt, initially climbing to a high of 74,010 yuan/mt before fluctuating downward, hitting a low of 73,740 yuan/mt near the close, and finally settling at 73,770 yuan/mt, down 0.54%, with trading volume at 24,000 lots and open interest at 150,000 lots. Macro side, the US dollar index hovered at highs on expectations of Trump's policies, weighing on copper prices. Domestically, the bond issuance volume of three policy banks in Q1 next year is expected to hit a record high. Fundamentally, over the weekend, arrivals of both imported and domestically produced copper increased, while year-end consumption remained weak. As of Monday, December 30, SMM copper inventories in major regions nationwide rose by 7,700 mt compared to last Thursday, reaching 113,100 mt. In summary, year-end consumption remains sluggish, and inventories are increasing, so copper prices are expected to see limited gains today.