Weak US Economic Data Fails to Mask Copper Market Strength, Copper Prices Show Resilience Amid Overnight Volatility [[SMM Morning Comment on Copper]]

SMM April 30 Report: Overnight, LME copper opened at $9,469.5/mt, hitting a high of $9,480/mt shortly after the opening bell. It then fluctuated downward throughout the session, reaching a low of $9,405/mt, before rebounding slightly at the close to finish at $9,446.5/mt, up 0.44%. Trading volume reached 16,000 lots, while open interest stood at 284,000 lots. Overnight, the most-traded SHFE copper 2506 contract opened at 77,950 yuan/mt, maintaining a rangebound fluctuation and touching a low of 77,660 yuan/mt. It rebounded at the close to finish at 77,740 yuan/mt, up 0.19%. Trading volume reached 29,000 lots, while open interest stood at 164,000 lots. On the macro front, US job openings in March fell to their lowest level since September last year. In April, the Conference Board Consumer Confidence Index plunged to its lowest point in nearly five years. The US goods trade deficit widened to a record $162 billion in March. Economists have stated that the widening trade deficit could drag down Q1 GDP growth by 1.9 percentage points, with market concerns emerging. On the fundamental front, as the Labour Day holiday approaches, downstream stockpiling has been active. Destocking continues in the Shanghai area, with tight spot market supply strengthening sellers' bargaining power and driving up spot premiums for copper cathode. Today marks the last trading day of the month, with most companies set to close their books for settlement, potentially reducing market activity. However, due to tight supply and persistent rigid demand, spot prices are expected to remain firm. On the price front, with robust downstream stockpiling ahead of the Labour Day holiday and concerns over tight supply, copper prices are expected to have upside room today.