Macro side, the US-EU trade agreement boosted the US dollar and risk sentiment. Meanwhile, Trump continued to pressure Fed Chairman Powell to lower borrowing costs, but the market generally expects the US Fed to maintain interest rates unchanged, which is bearish for copper prices, leading to a slight decline in LME copper. Fundamentally, from the supply side, both domestic and imported copper arrived over the weekend, and there will still be domestic supply this week. Additionally, suppliers have a need to sell and cash in at month-end, resulting in an overall loose supply situation. From the demand side, the decline in copper prices during the day slightly lifted downstream purchasing sentiment.
In terms of inventory, as of July 28, SMM's copper inventory in major regions across China rose by 6,100 mt from last Thursday to 120,300 mt. The total inventory was 230,900 mt lower than the 351,200 mt in the same period last year, with the overall inventory level still remaining at a relatively low level. Regarding prices, the market is currently waiting for news of the US reaching trade agreements with multiple countries. It is expected that copper prices will fluctuate rangebound before this happens.