Year-End Downstream Procurement Limited, Weak Trading Pressures Copper Prices [SMM Copper Morning Comment Dec 5]

Overnight, LME copper opened at $9,093/mt, initially fluctuated downward to a low of $9,041/mt, then rebounded, reaching an intraday high of $9,122.5/mt, before the center dropped and only rose again just before the close, finally settling at $9,097/mt, down 0.26%. Trading volume reached 17,000 lots, and open interest was 269,000 lots. Overnight, the most-traded SHFE copper 2501 contract opened at 74,490 yuan/mt, initially dipped to 74,230 yuan/mt, then fluctuated upward, maintained wide fluctuation, reaching an intraday high of 74,730 yuan/mt, and finally settled at 74,540 yuan/mt, down 0.31%. Trading volume reached 26,000 lots, and open interest was 159,000 lots. Macro side, Fed Chairman Jerome Powell stated that he does not see any possibility of a "shadow Fed Chairman" and that caution can be maintained when seeking the neutral rate. The French parliament voted to pass a motion of no confidence against the government, leading to the resignation of the Prime Minister. The outlook for US Fed interest rate cuts remains uncertain, with the US dollar staying strong, putting pressure on copper prices. Fundamentally, imported supplies continue to flow in, while year-end downstream procurement sentiment is generally moderate, leading to weak overall trading. Premiums are expected to decline slightly. In summary, the market is waiting for domestic consumption prospects, and with the future of Fed interest rate cuts uncertain, copper prices are expected to maintain a fluctuating trend today.