SMM Copper Morning Comment:Copper prices suppressed overnight as dollar strengthens

LME copper prices opened at $8968/mt and closed at $8847/mt last Friday, down 1.30%, with the highest of $8971/mt and the lowest of $8833/mt. The trading volume was 21,000 lots, and open interest stood at 315,000 lots. The most active SHFE 2405 copper contract prices opened at 72180 yuan/mt and finished at 72340 yuan/mt overnight, with the high-end of 72690 yuan/mt and the low-end of 72150 yuan/mt nearby, down 0.25%. The trading volume was 39,000 lots, and open interest stood at 203,000 lots. On the macro front, the president of the Atlanta Federal Reserve Bank spoke against expectations of an interest rate cut. It is expected that interest rates will be cut only once in 2024. The strength of the US dollar has suppressed copper prices. In terms of fundamentals, in terms of consumption, the decline in copper prices has led to a certain recovery in consumption, but the overall desire for downstream replenishment was still not strong. If copper prices continue to fall, consumption is expected to gradually recover. Overall, supply remains adequate. Due to the influence of macro sentiment, copper prices will move at highs in the near future.