Copper prices closed lower overnight [SMM Copper Morning Comment]

LME copper prices opened at $9371.5/mt and closed 0.39% lower at $9361/mt overnight, with the low-end of $9312.5/mt and the high-end of $9416/mt. The trading volume was 20,000 lots, and open interest stood at 327,000 lots. The most active SHFE 2102 contract prices opened at 76280 yuan/mt and closed at 76080 yuan/mt last evening, down 0.20%, with the high-end of 76410 yuan/mt and the low-end of 75830 yuan/mt. Trading volumes stood at 53,000 lots and open interest stood at 199,000 lots. On the macro level, the annual PPI rate in the United States was 2.1% in March. After the data was released, the possibility of the Federal Reserve cutting interest rates in July increased slightly, and the US dollar index was under certain pressure. But then the ECB kept interest rates unchanged, hinting at an imminent rate cut, and the U.S. dollar subsequently rose again, remaining at a high level, suppressing copper prices. In terms of fundamentals, from the supply side, the supply remains sufficient, and after delivery next week, it is expected that a certain amount of warehouse receipts will be offered for sale. In terms of consumption, the price spread between front-month and next-month contracts is relatively large as delivery approaches, resulting in a slight rebound in premiums and discounts. Actual transactions have not seen a significant recovery, and downstream purchasing was still relatively poor. On Fundamentals, as of Thursday April 11, SMM copper inventories across major Chinese markets stood at 405,200 mt, up 3,700 mt from Monday and 17,200 mt from a week earlier, 215,100 mt higher than the same period last year. Overall, the US dollar remains strong, but according to foreign media reports on the 11th, satellite monitoring data showed that the operation of global copper smelters in March declined compared with the previous two months, and idle production capacity increased. This will bolster copper prices today.