Overnight copper prices drifted lower, high copper prices suppressed downstream purchasing demand [SMM Copper Morning Comment]

Published: Jul 23, 2026 09:05

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SMM, July 23: Overnight, LME copper opened at $13,883.5/mt, hit a high of $13,888/mt early in the session, then drifted lower throughout the session, touching a low of $13,800/mt near the close, and finally settled at $13,806.5/mt, down 0.17%. Trading volume was 19,200 lots, and open interest stood at 246,000 lots, up 1,752 lots from the previous trading day, as bears added positions. Overnight, the most-traded SHFE copper 2609 contract opened at 106,000 yuan/mt, hit a high of 106,190 yuan/mt early in the session, then the price center shifted lower and touched 105,810 yuan/mt, before swinging wildly and eventually settling at 105,940 yuan/mt, down 0.16%. Trading volume was 26,600 lots, and open interest stood at 224,000 lots, down 3,512 lots from the previous day, as bulls reduced positions. On the macro front, Iran denied Trump's claim that Tehran had requested negotiations, calling it "groundless"; US Secretary of State Rubio expressed willingness to seek a diplomatic solution but pointed to a lack of sincerity from Iran. Trump threatened that if Iran attacks ships in the Strait of Hormuz, the US would destroy its bridges or power plants, while Iran's military responded that if the US carries out its threat, it would cut off all oil flows in the Gulf and strike regional energy and economic infrastructure. Additionally, Trump expects a federal government shutdown in September, and overnight copper prices consolidated amid these developments. On the fundamentals front, supply side, some suppliers increased shipments, but registered SX-EW copper supplies were scarce, resulting in an overall structurally tight balance; demand side, high copper prices, high premiums, and the off-season continued to weigh on downstream procurement, which remained persistently weak. Overall, copper prices are expected to consolidate on a subdued note today.

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