SMM copper morning comment: Copper prices meet resistance on rebounding US dollar index

LME copper prices opened at $8858/mt and closed at $8867.5/mt overnight, up 0.05%, with the highest of $8880/mt and the lowest of $8776/mt. Trading volume was 20,000 lots, and open interest stood at 310,000 lots. The most active SHFE 2405 copper contract prices opened at 71840 yuan/mt and finished at 72080 yuan/mt overnight, with the high-end of 72120 yuan/mt and the low-end of 71640 yuan/mt, up 0.01%. Trading volume was 34,000 lots, and open interest stood at 188,000 lots. On the macro front, Fed Governor Waller said that the stickiness of inflation indicated that there was no need to rush to cut interest rates. The US dollar fluctuated in a range at the beginning of the session. At the same time, the smelters will hold a quarterly meeting on the 28th, which may boost macro sentiments, and copper prices closed slightly higher. In terms of fundamentals, from the supply side, traders have a need to withdraw funds near the end of the month. Some supply of goods was delivered to warehouses. At the same time, the volume of arrivals decreased to a certain extent. In terms of consumption, copper prices and premiums have both declined, but end-use consumption continues to be weak and there are also financial constraints. Downstream replenishment is still weak. Overall supply and demand have weakened. Taken together, the yen once fell to its lowest level in 34 years, pushing the U.S. dollar sharply higher. The Bank of Japan has yet to take practical measures to respond. The U.S. dollar may remain high. It is expected that there will be pressure on copper prices.