SMM May 12 News: On Friday evening, LME copper opened at $9,449.0/mt. It dipped to $9,415.0/mt shortly after the opening bell, then rebounded, reaching a high of $9,479.5/mt during the session. After that, the price fluctuated and eventually closed at $9,439.0/mt, down 0.37%. Trading volume was 16,230 lots, and open interest was 295,096 lots. On the same evening, the SHFE copper 2506 contract opened at 77,950 yuan/mt. The price rose at the beginning of the session, hitting a high of 78,090 yuan/mt, then fluctuated and pulled back, touching a low of 77,720 yuan/mt. It eventually closed at 77,780 yuan/mt, up 0.15%. Trading volume was 41,198 lots, and open interest was 179,386 lots. On the macro front, at a Chinese press conference, it was announced that substantial progress had been made in the high-level China-US economic and trade talks, and important consensus had been reached. Both sides agreed to establish a China-US economic and trade consultation mechanism. China and the US will finalise the relevant details as soon as possible and will release a joint statement on the talks at the May 12 press conference. Trump's major announcement: One of the most important and influential pieces of content will be released; Trump said he would sign an executive order, which would immediately reduce drug prices by 30%-80%. Due to the wait-and-see attitude towards the talks' outcome, the US dollar index weakened on Friday evening, and copper prices fluctuated at highs. On the fundamental side, with copper prices remaining high and the price spread between futures contracts continuing to widen, downstream players maintained just-in-time procurement, with low restocking intentions. Although copper cathode inventories continued to destock, with the delivery approaching, spot copper is expected to trade at a discount under the high price spread. Overall, the China-US joint statement is expected to be released today, and copper prices are anticipated to have some support today.
