SMM News on February 26: Overnight, LME copper opened at $9,488.5/mt, initially rose to an intraday high of $9,528/mt, then declined all the way, hitting an intraday low of $9,385/mt near the close, and finally settled at $9,395/mt, down 1.13%. Trading volume reached 23,000 lots, and open interest stood at 294,000 lots. Overnight, the most-traded SHFE copper 2504 contract opened at 77,200 yuan/mt, initially rose to a high of 77,590 yuan/mt, then fluctuated downward, hitting a low of 76,550 yuan/mt near the close, and finally settled at 76,680 yuan/mt, down 0.69%. Trading volume reached 47,000 lots, and open interest stood at 168,000 lots. Macro side, Trump introduced new measures that could reshape global supply chains, instructing the Department of Commerce to study imposing tariffs on imported copper, with Chile, Canada, and Mexico being the most affected countries, intensifying market concerns. Additionally, weak economic data from the US and Germany heightened fears of slowing energy demand, while some countries indicated potential increases in oil production, pushing oil prices to a two-month low, with copper prices following suit. Fundamentally, supply side, as the SHFE copper 2405 contract's subsequent structure has shifted to a backwardation structure, suppliers are mostly waiting for an inventory turning point and are not in a hurry to sell. Demand side, downstream buying interest remains weak, coupled with fluctuating copper prices, leading to significant market caution and overall poor demand. Price side, tariff threats continue to loom over the market; however, a large-scale power outage in Chile affecting copper mines provided some fundamental support. Copper prices are expected to have limited downside today.
