LME copper closes slightly higher, bears exit; inventory destocking provides underlying support [SMM copper morning comment]

SMM July 6 News: Last Friday night, LME copper opened at $13,354.5/mt, dipped to $13,343/mt in early trading, then edged higher to touch $13,392/mt, and finally closed at $13,357.5/mt, up 0.54%. Trading volume was 8,500 lots and open interest was 250,000 lots, down 587 lots from the previous trading day, reflecting a reduction in short positions. Last Friday night, the most-traded SHFE copper 2608 contract opened at 102,710 yuan/mt, with the price center dipping to 102,710 yuan/mt, then the price center followed a "W"-shaped pattern, touched a high of 103,010 yuan/mt near the end, and finally closed at 102,790 yuan/mt, up 0.14%. Trading volume was 16,300 lots and open interest was 151,000 lots, down 811 lots from the previous trading day, reflecting a reduction in long positions. On the macro front, Iran's parliament speaker stated that there is still an opportunity to reach an agreement with the US, and market expectations suggest the US-Iran talks remain fragile. In addition, LME inventory continued destocking, providing support for the bottom of copper prices. On the fundamental side, supply side, suppliers held prices firm with strong sentiment, high-quality copper supply was tight, and overall spot circulation was tight; demand side, beginning-of-month rigid replenishment supported purchasing demand, but the rise in copper prices curbed downstream purchasing sentiment. Overall, copper prices are expected to hold up well in a consolidation pattern today.