SMM Copper Morning Comment

LME copper prices opened at $8352/mt and closed at $8341.5/mt last evening, a drop of 1.01%, with the low-end of $8313/mt and the high-end of $8389.5/mt. Trading volume was 27,000 lots open interest stood at 279,000 lots. The most active SHFE 2401 copper contract prices opened at 67600 yuan/mt and finished at 67530 yuan/mt overnight, with the high-end of 67780 yuan/mt and the low-end of 67490 yuan/mt, down 0.98%. Trading volume was 38,000 lots, and open interest stood at 153,000 lots. The number of JOLTS job vacancies in the United States in October was 8.733 million, well below expectations of 9.3 million and the lowest since March 2021. The U.S. ISM services index in November rebounded due to increased business activity, rising to 52.7, higher than expected. Moody's downgraded the outlook for its sovereign credit rating, and China's Ministry of Finance responded by saying it was disappointed. China's economy has great resilience and potential for development, and its long-term positive fundamentals have not changed. In terms of fundamentals, the price spread between front-month and next-month contracts widened yesterday. This,combined with the increasing arrivals of imported copper and domestic copper, lowered premiums and discounts in East China in the morning. The enthusiasm for downstream procurement has relatively recovered, and there is still support for premiums and discounts; in South China, inventories increased due to increased arrivals in the region. Although copper prices fell, the market outlook was still bearish and purchasing sentiment was not high. Premiums and discounts continued to fall yesterday. In terms of consumption, demand is expected to pick up. In terms of price, there is still room for recovery in copper prices due to low inventory support.