The Fed speaks "hawkishly", concerns about domestic demand suppressed copper prices [SMM Copper Morning Comment]

LME copper prices opened at $8455.5/mt and closed at $8374.5/mt overnight, a drop of 1.06%, with the low-end of $8357/mt and the high-end of $8485/mt. The trading volume was 189,000 lots, and open interest stood at 290,000 lots. SHFE 2403 copper opened at 68360 yuan/mt overnight and fell to 68000 yuan/mt after rising to 68390 yuan/mt, closing at 68050 yuan/mt, down 0.86%. The trading volume was 27,000 lots, and open interest stood at 133,000 lots. On the macro front, Federal Reserve Chairman Powell’s speech once again hit expectations for an interest rate cut. The possibility of an interest rate cut in March has almost been eliminated. At the same time, U.S. data continues to push the U.S. index higher, and copper prices are under pressure. In terms of fundamentals, from the supply side, suppliers registered a large amount of goods with warehouse receipts last weekend. At the same time, due to the heavy snow in the north, transportation was blocked. The holidays are about to begin, and cross-provincial logistics will also be suspended. The market supply may tend to decrease. In terms of consumption, as downstream holidays continue to take place, logistics operations gradually cease, and market trading sentiment becomes increasingly quiet. Therefore, both the supply and demand fell. In terms of price, on the whole, copper prices are under overall pressure as Federal Reserve Chairman Powell's repeated hawkish remarks. That, coupled with concerns about domestic demand have suppressed the price.