Tariff Policy Remains Unclear, Copper Prices Fell First and Then Rose Overnight [SMM Morning Comment on Copper]

SMM, January 22: Overnight, LME copper opened at $9,178/mt, initially dipping to $9,155/mt before climbing steadily. Near the session's end, it peaked at $9,292/mt and finally closed at $9,291/mt, up 0.27%. Trading volume reached 20,000 lots, and open interest stood at 298,000 lots. Overnight, the most-traded SHFE copper 2503 contract opened at 75,380 yuan/mt, initially dipping to 75,350 yuan/mt before fluctuating upward. Near the session's end, it peaked at 75,740 yuan/mt and finally closed at 75,700 yuan/mt, up 0.08%. Trading volume reached 21,000 lots, and open interest stood at 160,000 lots. Macro side, Trump did not provide any specific details regarding the imposition of universal tariffs or additional tax surcharges on major trading partners. However, he hinted at the possibility of imposing tariffs on Canadian and Mexican goods as early as February 1. The market struggled with the uncertainty surrounding Trump's tariff policies, with the US dollar index rising initially before falling, and copper prices following a similar pattern. Fundamentally, as the Chinese New Year break approaches, logistics will halt, and enterprises are gradually entering holiday mode. New orders in the market are limited, demand continues to weaken, and spot premiums are maintaining a downward trend. In terms of prices, with tariff policies still unclear, the US dollar is expected to fluctuate at its current high level, making further gains unlikely. Copper prices are expected to fluctuate rangebound at this level today.