SMM Morning Comment For Copper Market On November 7

SHANGHAI, November 7(SMM) –LME copper opened at $8253.5/mt overnight, with its session low and high at $8216/mt and $8255.5/mt before closing up 0.96% at $8247/mt. Trading volume was 18,000 lots, and open interest was 262,000 lots. SHFE 2312 copper contract opened at 67680 yuan/mt overnight, with its session high and low at 67830 yuan/mt and 67630 yuan/mt before closing up 0.36% at 67690 yuan/mt. Trading volume was 19,000 lots, and open interest was 147,000 lots. On the macro front, the Federal Reserve survey showed that credit conditions in the United States continued to tighten in Q3 but at a slower pace, and loan demand generally declined. In Europe, the final value of the Eurozone's services PMI in October was 47.8, a 32-month low; the Eurozone's final composite PMI in October was 46.5, a 35-month low. In terms of fundamentals, as of Monday November 6, copper stocks in mainstream areas of China decreased by 3,500 mt from last Friday to 60,200 mt, and also lower than 102,200 mt seen in the same period last year. Specifically, the customs clearance volume of imported copper in East China decreased last weekend, and the arrival of domestic copper also declined, causing local inventory to decrease; while in South China, due to the increase in arrival volume and the high premium in Guangdong, downstream purchasing enthusiasm declined, thus local inventories increased. In terms of consumption, as copper prices rebounded, the price difference between copper cathode and copper scrap expanded, weakening the advantage of the former and copper cathode demand is expected to decline. In terms of price, with the market in a wait-and-see mood, it is expected that copper prices will be difficult to continue to rebound.