US Dollar Index Rose to Two-Month High, Copper Prices Faced Pressure [SMM Copper Morning Comment]

Overnight, LME copper opened at $9,720.5/mt, initially reached a high of $9,733/mt, and then declined to a low of $9,606.5/mt during the session. It fluctuated upward towards the end, closing at $9,684/mt, a decrease of 0.76%. Trading volume reached 22,000 lots, and open interest was 297,000 lots. Overnight, the most-traded SHFE copper 2411 contract opened at 76,880 yuan/mt, initially dipping to 76,460 yuan/mt, then fluctuating upward to a high of 77,210 yuan/mt, finally closing at 77,000 yuan/mt, a decrease of 0.79%. Trading volume was 47,000 lots, and open interest was 160,000 lots. Macro side, the US Fed meeting minutes showed differences in the September interest rate cut, with some officials favoring a more gradual path to normal rates. Fed's Daly suggested there might be one or two more rate cuts this year. The US dollar index rose to a two-month high, putting pressure on copper prices. Fundamentally, although copper prices have clearly fallen, downstream purchasing sentiment remains lukewarm, mainly driven by just-in-time inventory replenishment. Post-holiday restocking demand has not yet significantly emerged. If copper prices continue to fall, consumption may pick up. Overall, with the high US dollar index and domestic consumption recovering slowly, copper prices face some upward pressure. If consumption recovers significantly in the near term, copper prices may stabilize.