Macro Factors Disrupt the Copper Market, Divergent Performance of LME and SHFE Copper Prices Overnight [SMM Morning Comment on Copper]

SMM News, February 27: Overnight, LME copper opened at $9,509/mt, initially reaching a high of $9,530/mt before fluctuating downward to a low. After a slight rebound near the close, it continued to pull back, touching a low of $9,411.5/mt and finally closing at $9,423/mt, up 0.3%. Trading volume reached 22,000 lots, and open interest stood at 296,000 lots. Overnight, the most-traded SHFE copper 2504 contract opened at 77,310 yuan/mt, initially hitting a high of 77,350 yuan/mt before fluctuating downward to an intraday low of 76,900 yuan/mt. It then rebounded near the close and finally settled at 77,100 yuan/mt, down 0.1%. Trading volume reached 29,000 lots, and open interest stood at 165,000 lots. Macro side, Trump stated on Wednesday that his administration would soon announce a 25% tariff on goods imported from the EU. He also raised hopes of another delay in imposing high new tariffs on imports from Mexico and Canada, stating that tariffs on Mexico and Canada would take effect on April 2, about a month later than next week's deadline. Overall, with expectations of US tariffs on copper heating up, LME copper strengthened, but the impact on SHFE copper was limited. Fundamentally, high copper prices in the short term remain an obstacle to destocking of processed materials. Suppliers reported difficulties in selling, with both buyers and sellers showing low activity. In terms of prices, copper prices are expected to be boosted by tariff expectations today.