Overnight, LME copper opened at $8,803.5/mt, narrowly fluctuated to a high of $8,840/mt at the beginning of the session, then broadly fluctuated downward during the session, touching a low of $8,745/mt near the end, and finally closed at $8,750.5/mt, down by 1.93%. Trading volume reached 20,000 lots, and open interest reached 293,000 lots. Overnight, the most-traded SHFE copper 2409 contract opened at 71,400 yuan/mt, touched a high of 71,400 yuan/mt at the beginning of the session, fell to a low level, rebounded during the session, and fell again near the end, touching a low of 70,820 yuan/mt, and finally closed at 70,930 yuan/mt, down by 0.78%. Trading volume reached 50,000 lots, and open interest reached 172,000 lots.
Macro-wise, after the Bank of Japan turned dovish, the US dollar index rebounded, which was bearish for copper prices. Additionally, LME inventories surged by more than 40,000 mt yesterday, heightening market concerns about demand prospects and significantly impacting copper prices. Fundamentally, the decline in copper prices has a certain stimulating effect on consumption demand, but the market still expects copper prices to have room for further decline, with procurement mainly for immediate needs. Furthermore, the previously arrived imported copper flowed into the domestic trade market, impacting spot premiums/discounts. In terms of prices, under the backdrop of strong market concerns, copper prices continued to run weakly.
