Copper Prices Went Up as Market Awaiting US Inflation Data

LME copper closed at $8,891/mt in overnight trading, a gain of 0.33%. Trading volume was 14,000 lots and open interest stood at 248,000 lots. SHFE 2305 copper contract finished at 69,870 yuan/mt overnight, up 0.47%. Trading volume was 35,000 lots, and open interest stood at 168,000 lots. On the macro front, the market is waiting for the U.S. inflation data to learn more about whether inflationary pressures have continued to weaken which will affect the Fed’s subsequent interest rate hike path. The U.S. index inched lower, bolstering copper prices. In terms of fundamentals, spot quotes yesterday were suppressed to a low level, mainly due to the impact of the expansion of the price difference between the SHFE front-month and SHFE next-month copper contract. Combined with lower SHFE copper prices, the overall transaction was brisk. There have been still imported copper inflows recently, but their impact on the spot market dropped.