Copper Prices Edged Up Overnight as Market Awaits Economic Data Release [SMM Morning Comment]

SMM January 8 News: Overnight, LME copper opened at $9,023/mt, initially fluctuated downward and then rebounded, reaching an intraday high of $9,035/mt. Subsequently, it fluctuated downward again, hitting an intraday low of $8,977/mt near the close, and finally settled at $8,980/mt, up by 0.16%. Trading volume reached 15,000 lots, and open interest stood at 260,000 lots. Overnight, the most-traded SHFE copper 2502 contract opened at 74,500 yuan/mt, initially hitting a high of 74,580 yuan/mt. It maintained a fluctuating trend during the session, touching a low of 74,370 yuan/mt, and slightly rebounded near the close before pulling back again, finally settling at 74,430 yuan/mt, up by 0.01%. Trading volume reached 15,000 lots, and open interest stood at 144,000 lots. Macro side, the US November JOLTs job openings data recorded 8.098 million, exceeding market expectations, with the previous value revised upward. The December ISM Non-Manufacturing PMI recorded 54.1, also surpassing market expectations. The labour market may show some slowdown, but the pace of deceleration is unlikely to prompt the US Fed to rush into an interest rate cut. Additionally, the market is still digesting the impact of tariff hikes introduced after Trump took office, which could drive US inflation higher, strengthen the US dollar, and suppress copper prices, collectively limiting the gains in copper prices. Fundamentally, the arrival of imported copper increased, and some suppliers actively offloaded goods at the beginning of the year, leading to a rise in copper cathode spot supply. Meanwhile, overall market transactions showed some improvement, and spot premiums are expected to remain flat. In terms of prices, the US January ADP employment data and the US Fed meeting minutes are scheduled to be released today, and copper prices are expected to stabilize today.