SMM copper morning comment: Copper prices under pressure as dollar rose after Fed officials said they will not cut interest rates quickly

LME copper prices opened at $8373.5/mt and closed at $8345/mt in overnight trading, a decline of 0.47%, with the low-end of $8330/mt and the high-end of $8363/mt. Trading volume was 19,000 lots, and open interest stood at 279,000 lots. The most active SHFE 2403 copper contract prices opened at 68020 yuan/mt and finished at 68010 yuan/mt last evening, up 0.29%, with the low-end of 67900 yuan/mt and the high-end of 68160 yuan/mt. Trading volume was 23,000 lots, and open interest stood at 145,000 lots. On the macro front, Fed Governor Waller said that interest rate cuts should be carried out in a cautious and orderly manner, and there is no reason to cut interest rates as quickly as in the past. Market expectations for rapid interest rate cuts in the United States were hit, and the U.S. index rose, suppressing copper prices. We need to pay attention to the upcoming U.S. economic Beige Book and official speeches, which will have an impact on market expectations for interest rate cuts. In terms of fundamentals, from the supply side, domestic inventories are currently accumulating, and warehouse receipts will gradually flow into the market. Copper supply is expected to be relatively loose this week. In terms of consumption, the downstream has optimistic expectations for the inflow of imported copper and the release of warehouse receipts in the future. As the consumption of its own inventory slows, downstream procurement has slowed down. If copper prices continue to decline, downstream procurement demand will increase to a certain extent. Otherwise, demand is expected to weaken. It is understood that processing companies will start pre-holiday stocking next week. The strong US dollar will weigh on copper prices.