Market Consumption Suppressed, Tepid Buying Interest; Copper Prices Show Resilience Amid High-Level Fluctuations [SMM Morning Comment on Copper]

SMM, February 20: Overnight, LME copper opened at $9,529/mt, initially reaching a high of $9,538.5/mt before fluctuating downward, hitting a low of $9,438/mt near the session's end, and finally closing at $9,442/mt, with open interest at 289,000 lots. Overnight, the most-traded SHFE copper 2504 contract opened at 77,670 yuan/mt, initially reaching a high of 77,710 yuan/mt before fluctuating downward, hitting a low of 77,340 yuan/mt near the session's end. The center then rebounded slightly, closing at 77,520 yuan/mt, up by 0.51%, with trading volume at 20,000 lots and open interest at 162,000 lots. Macro side, the US Fed's January meeting minutes revealed that several participants suggested it might be appropriate to pause or slow balance sheet reduction until the debt ceiling issue is resolved. Additionally, Trump warned Zelensky to make a swift decision on peace talks, stating that otherwise, he "will lose his country." Meanwhile, after Trump announced a 25% tariff on cars and chips, the EU trade commissioner expressed readiness to discuss reducing car tariffs with the US. Market uncertainty persists, lifting copper prices. Fundamentally, after the rise in copper prices, market consumption was again suppressed, with trading activity remaining subdued yesterday as the market awaited a price correction. Overall, market uncertainty continues, and copper prices are unlikely to see a significant decline.