Inventory Slightly Increased but Demand Rose, Copper Prices Edged Down Overnight [SMM Morning Comment on Copper]

SMM February 25 News: Overnight, LME copper opened at $9,490.5/mt, initially rising to an intraday high of $9,531/mt before declining to a low of $9,474/mt. By the end of the session, the center of gravity lifted but then returned to lower levels, ultimately closing at $9,502/mt, down 0.14%. Trading volume reached 16,000 lots, and open interest stood at 291,000 lots. Overnight, the most-traded SHFE copper 2504 contract opened at 77,360 yuan/mt, hitting an early high of 77,580 yuan/mt before fluctuating downward to a low of 77,160 yuan/mt. By the session's end, it remained rangebound, closing at 77,300 yuan/mt, down 0.15%. Trading volume reached 24,000 lots, and open interest stood at 173,000 lots. Macro side, Russian President Vladimir Putin stated that Russia and the US could agree on a 50% reduction in arms and that Russia plans to resume aluminum product exports to the US, with an export volume of 2 million mt. Meanwhile, market concerns over US economic growth have begun to emerge, intensifying as the deadline for Trump's tariffs on Canada and Mexico approaches next week, leading to a decline in copper prices. Fundamentally, limited import arrivals during the week, combined with increased downstream restocking amid falling copper prices, have significantly slowed the pace of social inventory buildup. As of Monday, February 24, SMM data showed copper inventories in major regions nationwide increased by 16,000 mt from last Thursday to 374,000 mt, with total inventories up by 208,000 mt compared to pre-holiday levels. Among them, Shanghai inventories were 128,000 mt higher than pre-holiday levels, Guangdong inventories were up by 48,000 mt, and Jiangsu inventories increased by 37,000 mt. In terms of prices, copper prices are expected to continue declining today.