SMM May 29th News: Overnight, LME copper opened at $9,636.5/mt. It initially rose to a high of $9,645.0/mt, then fluctuated downward. It touched a low of $9,548.0/mt at the end of the session and finally closed at $9,566.0/mt, down 0.31%. Trading volume was 14,383 lots, and open interest was 293,958 lots. Overnight, the SHFE copper 2507 contract opened at 78,010 yuan/mt. The price fluctuated at the beginning of the session, then declined continuously. It reached a high of 78,130 yuan/mt at the start and fell to a low of 77,700 yuan/mt at the end of the session, finally closing at 77,790 yuan/mt, down 0.33%. Trading volume was 26,397 lots, and open interest was 168,556 lots. On the macro side, the US Fed meeting minutes indicated that the risks of rising unemployment and inflation had increased, and the benefits of flexible average inflation targeting in a high-risk environment had diminished. However, the market was optimistic that trade agreements would improve the US economic outlook. Meanwhile, the weakening yen pushed the US dollar index to rise continuously, suppressing copper prices. On the fundamental side, copper prices remained high, and downstream consumption sentiment weakened. No pre-holiday inventory replenishment orders were seen ahead of the Dragon Boat Festival, while imported copper continued to arrive. Overall, the US dollar index surged, suppressing copper prices. However, copper inventories at LME-registered warehouses have fallen to their lowest level in nearly a year. It is expected that copper prices will stop falling and stabilize today.
