Macro Front Remains Quiet, Copper Futures Trend Flat in the Short Term [SMM Copper Futures Brief Review]

SMM, December 30:

Pan Gongsheng, Governor of the People's Bank of China, stated, "After the implementation of the RRR cuts, the average reserve requirement ratio (RRR) for the banking sector is approximately 6.6%. This level still leaves some room compared to the central banks of major economies internationally." LME copper weakened during the day, briefly hovering below $9,000/mt in the morning session before declining to around $8,950/mt in the afternoon.

The SHFE copper 2502 contract fluctuated upward during the day, stimulated by the broader market, with overall movements around 74,200 yuan/mt. It closed at 74,270 yuan/mt, down 80 yuan/mt or 0.11%, with a trading volume of 46,017 lots and current open interest of 148,358 lots, a daily decrease of 617 lots. The SHFE copper 2501 contract recorded a trading volume of 24,875 lots, with current open interest of 61,117 lots, a daily decrease of 12,231 lots. The inter-month price spread between the SHFE copper 2501 and 2502 contracts fluctuated between contango 20 yuan/mt and BACK 20 yuan/mt during the day.

After the Asian session, copper futures showed a downward trend, with the US dollar index at high levels continuing to exert resistance on copper futures. In the short term, the macro front remains quiet, and technical indicators suggest low short-term volatility. Technical indicators for both SHFE and LME copper have flattened, with no clear direction. Tonight, SHFE copper will test support at 74,000 yuan/mt, while LME copper will test support at $8,950/mt.
 

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