Weak US dollar index coupled with mine tremor disturbances: copper prices dipped initially before rebounding overnight to close higher [SMM Morning Comment on Copper]

       SMM May 26 News: Overnight, LME copper opened at $9,570.5/mt. After initial fluctuations, it trended lower, hitting a low of $9,478.0/mt during the session. It then fluctuated upward, reaching a high of $9,630.0/mt near the close, and ultimately closed at $9,614.0/mt, up 0.99%. Trading volume was 19,904 lots, and open interest was 287,484 lots. Overnight, the SHFE copper 2506 contract opened lower at 77,680 yuan/mt. After initial fluctuations, it fluctuated upward, reaching a high of 78,480 yuan/mt during the session, and ultimately closed at 78,390 yuan/mt, up 0.72%. Trading volume was 29,488 lots, and open interest was 151,158 lots, with a daily increase in open interest of -1,247 lots and a daily change rate in open interest of -0.82%. On the macro side, after the US indicated on Friday that it would impose a 50% tariff on goods from the EU, copper prices fell. However, as the US dollar index dropped to its lowest level in more than three weeks, copper prices rebounded and trended higher. Meanwhile, Zijin Mining announced on the evening of May 23 that there had been multiple mine tremors at the Kakula mine section of the Kamoa-Kakula copper mine owned by the company in recent days. Following a decision by the management of Kamoa Copper, underground operations in the area have been suspended. Concerns about the copper mine have also boosted copper prices. In addition, Trump has now restored the 90-day window for trade negotiations with the EU. On the fundamental side, the availability of marketable supplies has once again tightened, with signs of a widening price spread between futures contracts and an upward movement in the premium. Downstream consumption remains sluggish amid high copper prices and high premiums. Overall, with the US dollar index operating weakly, copper prices are expected to find support today.