SMM Morning Comment For Copper Market On January 9

SHANGHAI, January 9 (SMM) –
LME copper opened at $8,396/mt on Monday, rose all the way at the beginning and during the session, touching $8,461.5/mt, and then consolidated sideways at the end of the session, finally closing at $8,437/mt, with open interest reaching 276,000 lots. SHFE 2402 copper contract opened at 68090 yuan/mt overnight, with its session low and high at 67930 yuan/mt and 68250 yuan/mt before closing down 0.16% at 68130 yuan/mt. Open interest stood at 123,000 lots. On the macro front, the U.S. non-farm payrolls and wage growth in December exceeded expectations. This reduced the possibility of the Federal Reserve cutting interest rates in March. The U.S. dollar index fluctuated sideways. Federal Reserve officials made hawkish statements, which exerted some pressure on copper prices. The current New York Fed survey shows that inflation expectations have dropped to a three-year low, and we need to pay attention to key inflation data for subsequent trends. As of Jan 8, copper inventory across China’s major trading markets decreased by 4,000 mt from last Friday to 72,900 mt. Compared to last Friday, inventories in most regions across the country fell, with only increases in Jiangsu. However, due to limited recovery in consumption, the supply situation is not tight, and spot premiums are expected to continue to fall. In terms of consumption, consumption has rebounded to a certain extent after the holidays, but the overall increase is limited. If copper prices fall further, it may give a certain boost to consumption. In terms of price, the market expectations for the Federal Reserve to cut interest rates have weakened, the U.S. dollar index remained at a high level, and copper prices are expected to come under pressure.