The US dollar index plummeted to its lowest level since March 2022, and the destocking of copper cathode inventories accelerated. [SMM Copper Morning Comment]

SMM April 22 News: LME copper was closed overnight. The SHFE copper 2506 contract opened at 77,400 yuan/mt overnight, initially touched a high of 77,490 yuan/mt, then fluctuated downward to a low of 76,640 yuan/mt, and finally closed at 76,760 yuan/mt, up 0.41%. The trading volume was 45,721 lots, and the open interest was 164,089 lots. On the macro front, sources said the originally scheduled Thailand-US trade talks on April 23 will no longer take place. Vance met with Modi, India sought Trump's tariff relief, and India imposed a 12% tariff on some steel products for 200 days. The US plans to impose new tariffs on solar products imported from Cambodia, Thailand, Malaysia, and Vietnam. Trump said there is almost no inflation (problem) and demanded Powell to cut interest rates, otherwise economic growth may slow down. Recently, Trump has repeatedly criticized Powell, and investors' confidence in US assets has decreased. The US dollar index plummeted. Under the lower US dollar index and increased tariff policies, copper prices closed higher overnight. On the fundamental side, domestic arrivals were low, and the supply of imported copper was limited, while market trading was moderate, and the destocking of copper cathode accelerated. As of Monday, April 21, SMM's national mainstream copper inventories fell by 36,900 mt WoW to 196,500 mt. Compared with the inventory changes last Friday, only Chongqing saw a slight increase in inventory, while other regions experienced destocking. Overall, the US dollar index stopped falling and operated at a low level. It is expected that copper prices will maintain a relatively high level today.