U.S. labor market data better than expected, strong U.S. dollar suppresses copper prices [SMM Copper Morning Comment]

LME copper prices opened at $8535/mt and closed at $8481.5/mt in overnight trading, a drop of 0.39%, with the low-end of $8424.5/mt. Trading volume was 19,000 lots and open interest stood at 277,000 lots. The most active SHFE 2402 copper contract prices opened at 68200 yuan/mt and finished at 68410 yuan/mt overnight, with the high-end of 68420 yuan/mt and the low-end of 68120 yuan/mt, a drop of 0.01%. Trading volume was 23,000 lots, and open interest stood at 129,000 lots. On the macro front, the U.S. ADP employment numbers in December and the number of people applying for unemployment benefits at the beginning of last week both fell more than expected. The U.S.'s better-than-expected labor market data suppressed expectations for an interest rate cut this year. The U.S. index rose slightly, which had a short-term suppressive effect on copper prices. It is also necessary to continue to pay attention to the upcoming unemployment rate and non-farm payroll data in the United States. In terms of fundamentals, as copper prices shifted downward, downstream consumption rebounded slightly. Although sellers are willing to ship at higher prices, there is a demand for replenishment downstream, and actual trading has picked up. On the supply side, inventory has increased significantly, and consumption is expected to be limited at present. Supply is not tight. In terms of consumption, if copper prices remain stable, consumption is expected to pick up. The copper prices will meet resistance as the US dollar index rose.