Initial Signs of Sino-US Trade Disputes; Intraday High Consolidation of Copper Futures [SMM Copper Futures Brief Review]

Published: Feb 5, 2025 18:23

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Recently, US economic data fell short of expectations, raising doubts in the market about the US Fed's policy outlook. The US dollar fluctuated, showing an overall downward trend. The US-China trade dispute resurfaced as US President Donald Trump signed an executive order on February 1 to raise a 10% tariff on goods imported from China. On the Chinese side, tariffs will be raised on certain imports originating from the US. A 15% tariff will be imposed on coal and liquefied natural gas, while a 10% tariff will be applied to crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. Today, London copper fluctuated, opening at $9,178/mt in the morning session. The intraday high briefly reached $9,204/mt before pulling back, with the lowest point dipping to $9,150/mt.

SMM, February 5: Recently, US economic data fell short of expectations, raising doubts about the US Fed's policy outlook. The US dollar fluctuated and overall showed a downward adjustment. Initial signs of trade disputes between China and the US emerged as US President Donald Trump signed an executive order on February 1 to raise a 10% tariff on goods imported from China. In response, China announced tariffs on certain US-origin imports, imposing a 15% tariff on coal and liquefied natural gas, and a 10% tariff on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. Today, LME copper fluctuated, opening at $9,178/mt in the morning session. It briefly reached an intraday high of $9,204/mt before pulling back to a low of $9,150/mt. During the afternoon trading session, LME copper prices hovered around $9,160/mt, with market sentiment remaining cautious. By the end of the Asian trading session, the latest LME copper quote stood at $9,161.5/mt, up $11/mt from the previous closing price, marking a 0.12% increase. Overall, LME copper fluctuated around the daily moving average, with its short-term direction remaining unclear. SHFE copper contract 2503 opened today at 75,350 yuan/mt, reaching an intraday high of 75,530 yuan/mt. However, it quickly declined due to bearish pressure and market digestion, ultimately closing at 75,290 yuan/mt, down 260 yuan/mt or approximately 0.35%. Trading volume slightly decreased compared to the previous trading day, registering 38,931 lots, while open interest increased slightly to 155,433 lots. In the spot market, price fluctuations across major regions were relatively mild. Spot prices in the Yangtze River and Shanghai regions showed slight increases, reflecting some support from the supply and demand fundamentals. Looking ahead, the market will continue to monitor US economic data and the US Fed's policy developments, particularly the upcoming employment and inflation data, which may further influence the US dollar's performance and global risk appetite. Domestically, with the delivery date approaching and a relatively tight spot supply situation, SHFE copper may experience a phase of reduced open interest. LME copper is expected to continue fluctuating within the $9,150-9,200 range, while SHFE copper is likely to stabilize within its support range. 》Subscribe to view SMM historical spot metal prices

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