Macro pressures intertwined with wait-and-see demand, copper prices fell overnight [[SMM Morning Comment on Copper]]

SMM May 8: LME copper opened at $9,457/mt overnight, initially touched a high of $9,478/mt, then fluctuated downward, nearing the end of the session, it touched a low of $9,400.5/mt, and slightly rebounded at the end of the session, finally closing at $9,406/mt, down 1.2%, with trading volume reaching 15,000 lots and open interest reaching 292,000 lots. The most-traded SHFE copper 2506 contract opened at 77,620 yuan/mt overnight, initially touched a high of 77,710 yuan/mt, fluctuated downward during the session and touched a low of 77,340 yuan/mt, and finally closed at 77,450 yuan/mt after fluctuating rangebound at the end of the session, down 0.74%, with trading volume reaching 36,000 lots and open interest reaching 177,000 lots. Macro side, the US Fed maintained interest rates unchanged for the third consecutive time, emphasizing the rising risks of inflation and unemployment in its statement. Powell highlighted the uncertainties and the low cost of continued wait-and-see, indicating no rush to cut interest rates, and the US dollar index rose, suppressing copper prices. Fundamental side, demand side, showed significant divergence, with moderate procurement sentiment in the morning session and active spot premiums for different brands of copper, but as the price spread between futures contracts widened in the afternoon, procurement sentiment quickly cooled, with few actual transactions, and downstream bargain down purchasing prices, overall demand showed cautious wait-and-see. Price side, after sentiment digestion, copper prices are expected to have some upside room today.