SMM Copper Morning Comment Jul 10: Fed Avoids Signaling Rate Cuts, Copper Prices Decline Overnight 

SHANGHAI, July 10 (SMM) – Overnight, LME copper opened at $9,927/mt, initially reaching a high of $9,952/mt before declining, hitting a low of $9,819/mt near the end of the trading session, and finally closed at $9,875/mt, down 0.22%, with a trading volume of 14,000 lots and an open interest of 329,000 lots. Overnight, the most-traded SHFE copper 2408 contract opened at 80,260 yuan/mt, initially reaching a high of 80,320 yuan/mt before consolidating and then declining to a low of 79,600 yuan/mt, and finally closed at 79,890 yuan/mt, down 0.56%, with a trading volume of 43,000 lots and an open interest of 197,000 lots.
Macro-wise, Fed Chairman Powell stated that the labour market has fully balanced, and inflation is not the only risk faced. Both premature and delayed rate cuts pose risks, and the Fed will avoid giving any signals regarding the timing of rate cuts. The US dollar index surged, suppressing copper prices. Fundamentally, copper prices remained high, with weak demand and low downstream procurement enthusiasm. However, before the delivery of SHFE 2407 contract, sellers are expected to maintain firm spot premiums/discounts. Price-wise, copper prices declined due to macro sentiment, but strong support remains.