LME copper prices closed at $8,551/mt last evening, down 0.62%. Trading volume was 16,000 lots and open interest stood at 275,000 lots. The most active SHFE 2309 copper contract finished at 68,900 yuan/mt overnight, down 0.39%. Trading volume was 35,000 lots, and open interest stood at 184,000 lots.
On the macro front, the US GDP growth unexpectedly accelerated in the second quarter, and the growth rate of durable goods orders in June also far exceeded expectations, increasing the expectation of a "soft landing". Better-than-expected US economic data dampened investor expectations for a relatively dovish monetary policy by the Federal Reserve. In terms of fundamentals, copper prices soared yesterday, the enthusiasm for trading in the spot market declined, while some traders restocked on the dip.
Some downstream buyers in east China restocked for weekend production in advance. Sellers in south China sold goods at low prices, but the downstream purchasing enthusiasm was weak. End-user consumption was weak, and most of the trades were contributed by traders. On the macro front, the U.S. economy is still resilient. It is expected that copper prices will remain high in the near future.
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