SMM

LME copper prices opened at $9003/mt and closed with a drop of 1.43% at $8972/mt last evening, with the low-end of $8944/mt and the high-end of $9003/mt. Trading volume stood at 24,000 lots. Open interest stood at 313,000 lots. The most active SHFE 2405 copper contract prices opened at 72420 yuan/mt and finished at 72620 yuan/mt last evening, down 0.89%, with the low-end of 72350 yuan/mt and the high-end of 72750 yuan/mt. Trading volume was 52,000 lots, and open interest stood at 221,000 lots. On the macro front, previous U.S. economic data showed that inflation is still highly sticky, expectations of interest rate cuts have been suppressed, and the U.S. dollar index has risen, which is negative for copper prices. The market is paying more attention to the Fed's interest rate decision and summary of economic expectations. In terms of fundamentals, from the supply side, there is still a large supply of goods in the hands of cargo holders, and some have begun to ship at low prices. Although downstream companies have replenished goods, most are still in a wait-and-see mode, and the overall supply is still ample. In terms of consumption, copper prices remain at a high level, and some processing companies have stopped production to eliminate inventory. It is expected that demand will be difficult to improve before copper prices fall significantly. In terms of price, before the Federal Reserve meeting, the market had strong expectations for the postponement of interest rate cuts, and there was pressure on copper prices.