Just-in-Time Procurement Leads to Rapid Consumption of Imported Resources; Copper Cathode Inventory Declines for Seven Consecutive Weeks [SMM Copper Morning Comment Dec 6]

LME copper opened at $9,102/mt overnight. After an initial decline, it maintained a wide fluctuating trend throughout the session, with the center shifting downward. It peaked at $9,110/mt at the beginning of the session and hit a low of $9,060/mt at the end, finally closing at $9,090/mt, down 0.08%. Trading volume reached 12,000 lots, and open interest was 268,000 lots. The most-traded SHFE copper 2501 contract opened at 74,630 yuan/mt overnight, peaked at 74,700 yuan/mt at the beginning of the session, then declined to a low of 74,280 yuan/mt, and maintained a wide fluctuating trend thereafter, finally closing at 74,400 yuan/mt, down 0.13%. Trading volume reached 20,000 lots, and open interest was 155,000 lots. Macro side, initial jobless claims in the US last week were higher than expected, leading to a decline in the US dollar index. However, due to the uncertainty of domestic consumption stimulus policy, market sentiment declined, causing copper prices to fall slightly. On the fundamentals side, downstream demand was generally weaker than in November, with enterprises maintaining just-in-time procurement. However, with suppliers actively shipping, the continuously imported supplies were rapidly consumed. As of Thursday, December 5, SMM national copper inventories in mainstream regions nationwide decreased by 12,900 mt compared to Monday, reaching 130,300 mt, and decreased by 7,200 mt compared to last Thursday, marking the seventh consecutive week of destocking, although the destocking speed has slowed. Attention will be on whether destocking can continue next week. Overall, the market lacks clear guidance, and copper prices are expected to maintain a fluctuating trend today.