SMM Copper Morning Comment

LME copper prices opened at $8637/mt and closed at $8615/mt in overnight trading, a drop of 0.93%, with the low-end of $8633/mt and the high-end of $8655.5/mt. Trading volume was 15,000 lots and open interest stood at 284,000 lots. The most active SHFE 2402 copper contract prices opened at 68970 yuan/mt and finished at 69030 yuan/mt last evening, down 0.68%, with the low-end of 68930 yuan/mt and the high-end of 69150 yuan/mt. Trading volume was 23,000 lots, and open interest stood at 150,000 lots. On the macro front, the number of initial jobless claims in the United States in the week to December 23 was 218,000, exceeding the expected 210,000, indicating that the labor market continues to cool down. Although it is conducive to increasing market confidence in the Federal Reserve's interest rate cut next year, due to many investment Investors closed their remaining currency positions, the U.S. index rebounded, and copper prices came under pressure. In terms of fundamentals, from the supply side, the current supply of tradable goods in Shanghai is relatively tight, while sellers in other regions are also clearing inventory at the end of the year. Arriving shipments of imported copper were delayed. Copper supply was tight this week. In terms of consumption, copper prices soared, and rising premiums and discounts have led to a decline in downstream purchasing enthusiasm. In the last week of the year, many companies are conducting year-end settlements, and purchased as required. Consumption is expected to continue to be weak. Copper prices will unlikely fall further due to support.