LME copper and SHFE copper both closed lower, with tariff uncertainty weighing on copper prices [SMM morning comment on copper]

SMM News on July 7: Last Friday evening, LME copper opened at $9,872/mt, reaching a high of $9,896/mt shortly after the opening bell. It then fluctuated considerably downward, dipping to $9,848/mt near the close, and ultimately closed at $9,852/mt, marking a 1% decline. Trading volume reached 12,000 lots, and open interest stood at 284,000 lots. Last Friday evening, the most-traded SHFE copper 2508 contract opened at 79,810 yuan/mt, surging to 79,950 yuan/mt shortly after the opening bell. Subsequently, the center of copper prices shifted downward, consolidating sideways, and ultimately touching a low of 79,720 yuan/mt, marking a 0.56% decline. Trading volume reached 17,000 lots, and open interest stood at 212,000 lots. On the macro side, Trump stated that he might send 12 or 15 tariff-related letters on Monday, while also signing the "Big and Beautiful" tax and spending bill. The uncertainty surrounding tariffs has led to copper prices encountering resistance. The market's focus has shifted to the July 9 deadline set by Trump for the tariff moratorium, after which the US will impose reciprocal tariffs on countries that have not yet reached trade agreements. US Treasury Secretary Bessent indicated that several major agreements are close to being finalized. If countries that receive tariff letters fail to reach agreements, the tax rate will revert to April levels starting from August 1. On the fundamental side, mainstream standard-quality copper and high-quality copper remained tight last week, but with the arrival of Russian cargoes during the week, the spot market slightly loosened. Overall, the uncertainty surrounding tariffs, combined with the loosening of the spot market, has led to copper prices encountering resistance.