The night session closed higher amid volatility, with attention on guidance from non-farm payrolls data [SMM Copper Morning Comment]

SMM, June 6: Overnight, LME copper opened at $9,754.5/mt, initially fluctuated upward and peaked at $9,809.5/mt, before fluctuating downward. It touched a low of $9,702.5/mt near the close and eventually closed at $9,707.5/mt, up 0.61%. Trading volume reached 28,000 lots, and open interest reached 283,000 lots. Overnight, the most-traded SHFE copper 2507 contract opened at 78,960 yuan/mt, initially rose and peaked at 79,180 yuan/mt, before fluctuating downward all the way. It touched a low of 78,490 yuan/mt near the close and eventually closed at 78,570 yuan/mt, up 0.58%. Trading volume reached 75,000 lots, and open interest reached 199,000 lots. On the macro side, US data showed that initial jobless claims surged to an eight-month high last week. Amid escalating economic headwinds from tariffs, the labour market softened, putting pressure on the US dollar and providing support to copper prices. The market is now awaiting guidance from the non-farm payrolls report on Friday. On the fundamental side, there were significant differences in copper cathode brands during the day, with a large fluctuation in premiums. Demand side, both upstream shipments and downstream procurement sentiment weakened, with sluggish downstream consumption and a clear counter-offering mindset. As of Thursday, June 5, SMM's copper inventories in major regions across China fell by 4,000 mt from Monday to 149,000 mt, up 10,000 mt from last Thursday, an increase of 29,000 mt from the recent low, and 302,000 mt lower than the 451,000 mt recorded in the same period last year. On the price side, it is expected that there will be limited upside potential for prices today.