Japan-US Tariff Negotiations & Disruptions at African Mines, Copper Prices Still Have Bottom Support [SMM Copper Morning Comment]

      SMM May 27th News: The LME copper market was closed overnight. The overnight SHFE copper 2507 contract opened at 77,740 yuan/mt, reaching a high of 78,340 yuan/mt and a low of 77,710 yuan/mt during the session. The closing price was 78,150 yuan/mt. The overall trend fluctuated upward. The increase was 0.31%, with a trading volume of 26,894 lots and an open interest of 157,842 lots. On the macro side, the fourth round of tariff negotiations between Japan and the US is scheduled to take place on the 30th. The Japanese government plans to utilize 900 billion yen in national funds to mitigate the impact of US tariffs. EU spokesperson: During negotiations with the US, the EU's proposal of "zero tariffs for zero tariffs" remains on the table. It is understood that the EU has plans to accelerate negotiations with the US. Meanwhile, some African copper mines have suspended operations, boosting copper prices. On the fundamental side, there is limited overall market liquidity, and spot premiums remain firm. It is expected that there will be imported arrivals today, with importers selling for cash continuing to put pressure on spot premiums. It is anticipated that premiums will face downward pressure today. Overall, with the advancement of tariff negotiations between Japan, the US, Europe, and the US, and Trump's comprehensive spending and tax cut proposals still weighing on the US dollar index, it is expected that there will still be support at the bottom of copper prices today.