Weak Consumption but Lower US Dollar Index; Copper Prices Expected to Have Bottom Support [SMM Copper Morning Comment]

SMM January 15 News: Overnight, LME copper opened at $9,160.5/mt, initially declined to a low of $9,107.5/mt during the session, then fluctuated upward, reaching a high of $9,170/mt by the end of the session, and finally closed at $9,164/mt, with open interest at 280,000 lots. Overnight, the most-traded SHFE copper 2503 contract opened at 75,500 yuan/mt, initially fluctuated widely and hit a low of 75,360 yuan/mt, then climbed steadily, reaching a high of 75,750 yuan/mt by the end of the session, before slightly retreating to close at 75,670 yuan/mt, up by 0.33%, with trading volume at 17,000 lots and open interest at 150,000 lots. Macro side, the US December PPI data fell short of expectations, the US dollar index edged lower, and crude oil continued to rise, all providing support for copper prices. On the fundamentals, SHFE registered warehouse warrants currently stand at approximately 11,000 mt, indicating tight deliverable supply in the market, which supports premiums to some extent. However, from the consumption perspective, as the year-end approaches, overall market consumption remains weak. In summary, with the US dollar index declining and crude oil continuing to rise, copper prices are expected to remain supported at the bottom today.