Last Friday, LME copper opened at $9,802.5/mt, hit a session low of $9,786/mt at the beginning, then climbed all the way up, reaching a session high of $9,881.5/mt at the end of the trading session, and finally closed at $9,877/mt, up by 1.02%. Trading volume reached 20,000 lots, and open interest reached 327,000 lots.
Last Friday night, the most-traded SHFE copper 2408 contract opened at 79,600 yuan/mt, initially dipped to a session low of 79,260 yuan/mt, then rebounded, reaching a session high of 79,770 yuan/mt at the end of the trading session, and finally closed at 79,700 yuan/mt, up by 0.62%. Trading volume reached 40,000 lots, and open interest reached 191,000 lots.
Macro-wise, US inflation data for June unexpectedly declined, and the yen rose, with sources indicating that Japanese officials intervened in the forex market. The weak performance of the US dollar index led to higher copper prices.
Fundamentals, the arrival of imported copper cathode was limited, and copper scrap supply remained tight. On the consumption side, reduced copper scrap supply together with a slight decline in copper prices led to a market rebound in transactions, but overall, demand remained driven by necessity, with some producers waiting for delivery.
In summary, copper prices are expected to remain high. Additionally, it is noteworthy that there was an attempted assassination of Trump, which may continue to impact the US economy and the future direction of the election. Today, attention will be on China's GDP data.
