US CPI Unexpectedly Cools, US Dollar Index Weakens; LME Copper and SHFE Copper Surge Over 1% in Night Session [SMM Copper Morning Comment]

        SMM May 14 News: Overnight, LME copper opened at $9,564.0/mt. Prices fluctuated at the beginning of the session, dipping to a low of $9,510.0/mt, before continuing to rise. Near the close, prices reached a high of $9,624.5/mt and eventually closed at $9,624.5/mt, up 1.29%. Trading volume was 16,908 lots, and open interest was 289,770 lots. Overnight, the SHFE copper 2506 contract opened at 77,930 yuan/mt. Prices fluctuated at the beginning of the session, then gradually rose. They dipped to a low of 77,830 yuan/mt at the start, before continuing to climb. Near the close, prices reached a high of 78,730 yuan/mt and eventually closed at 78,650 yuan/mt, up 0.99%. Trading volume was 46,139 lots, and open interest was 187,763 lots. On the macro front, the US April unadjusted CPI year-on-year rate unexpectedly fell to 2.3%, the lowest since February 2021. After the CPI report, Trump once again pressured Powell, calling for an interest rate cut and stating that the stock market would surge. US inflation data unexpectedly came in below expectations, causing the US dollar index to weaken and pushing up copper prices. On the fundamental side, arrivals remain low, and as the delivery deadline approaches, warrant increments are also limited. However, the rising sentiment of traders to purchase may gradually increase warrant volumes. It is expected that spot discounts will remain firm. Overall, the below-expectations inflation data caused the US dollar index to give back gains and then fluctuate. It is expected that the bottom support for copper prices will weaken today.

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