Trade tariffs disrupted the market, and copper prices were under pressure and declined overnight [SMM Morning Comment on Copper].

SMM March 27 News: Overnight, LME copper opened at $9,942/mt, reaching a high of $9,971/mt during the session, and a low of $9,900/mt at the end of the session, closing at $9,907/mt. The overall trend initially fluctuated upward before pulling back. The decline was 1.86%, with a trading volume of 31,000 lots and open interest of 303,000 lots. Overnight, the most-traded SHFE copper 2505 contract opened at 81,670 yuan/mt, reaching a high of 81,870 yuan/mt and a low of 81,350 yuan/mt during the session, closing at 81,520 yuan/mt. The overall trend fluctuated downward. The decline was 1.08%, with a trading volume of 62,000 lots and open interest of 240,000 lots. On the macro front, Trump announced a 25% tariff on imported cars on Wednesday, and insiders revealed that the US would accelerate the imposition of copper tariffs, several months ahead of the expected timeline. This has raised concerns about escalating trade tensions and a slowdown in global economic growth. The uncertainty brought by the copper tariffs pushed Comex copper prices to a new historical high, and the price spread between Comex and LME copper continued to widen. On the fundamental side, supply side, copper prices surged sharply in the early session yesterday, with significant fluctuations in suppliers' hedging positions, putting pressure on their willingness to sell, leading to a relatively deadlocked supply side. Demand side, downstream buyers showed weak pricing intentions, with only a small amount of just-in-time procurement maintained. Copper prices fluctuated significantly during the day, and market trading volume noticeably weakened, with overall demand performance being mediocre. Price-wise, copper prices are expected to continue their downward trend today, but the overall downside space is limited.