Copper prices came under pressure and pulled back overnight. Keep an eye on the U.S.-Iran situation and the procurement support from the demand side [SMM Copper Morning Comment]

SMM May 22 News: Overnight, LME copper opened at $9,542.5/mt, rose initially and peaked at $9,567/mt, then fluctuated downward throughout the session, dipping to a low of $9,487/mt near the close, and finally closed at $9,487/mt, down 0.71%. Trading volume reached 14,000 lots, and open interest stood at 285,000 lots. Overnight, the most-traded SHFE copper 2506 contract opened at and peaked at 78,010 yuan/mt, maintained a narrow rangebound fluctuation during the session, dipped slightly near the close to a low of 77,770 yuan/mt, and finally closed at 77,770 yuan/mt, down 0.41%. Trading volume reached 21,000 lots, and open interest stood at 159,000 lots. On the macro front, the US and Iran have held multiple rounds of talks on Iran's nuclear program this year, with Trump previously restarting actions to tighten sanctions on Iran's crude oil exports. Sources familiar with the matter said that Israel is preparing to swiftly strike Iran's nuclear facilities in the event of a breakdown in US-Iran negotiations. Affected by this, crude oil prices first rose and then fell, exerting downward pressure on copper prices. On the fundamental side, from the supply side, some smelters did not directly ship goods, with the market dominated by import traders and warrant-holding traders offering goods at low prices, and the sentiment for shipping goods weakened. From the demand side, as spot premiums fell, the downstream procurement sentiment index rose, and buyers actively engaged in bargain down purchasing prices. In terms of prices, with no more bearish news currently, it is expected that there will be limited downside space for copper prices today.