SMM

Last Friday evening, LME copper opened at $9,496.5/mt and initially dipped slightly before rising to a high of $9,515.5/mt. It then declined all the way, touching a low of $9,410.5/mt near the close, and finally rebounded slightly to close at $9,433/mt, down 2.54%. Trading volume reached 22,000 lots, and open interest was 276,000 lots. Last Friday evening, the most-traded SHFE copper 2412 contract opened at 76,480 yuan/mt, initially touched a high of 76,810 yuan/mt, then fluctuated downward, touching a low of 76,380 yuan/mt near the close, and finally closed at 76,420 yuan/mt, down 1.1%. Trading volume reached 34,000 lots, and open interest was 148,000 lots. Macro side, last Friday, the "Trump trade" momentum persisted, the US dollar index resumed its upward trend, and a survey released on Friday showed that US consumer confidence in early November rose to its highest level in seven months, which was bearish for copper prices. Additionally, traders' concerns about long-term supply disruptions caused by hurricanes in the US Gulf of Mexico eased, and the potential increase in US oil supply under Trump's administration led to a decline in international crude oil prices, dragging copper prices down. Fundamentally, last Friday, copper prices rebounded to previous highs, market demand weakened, and downstream buyers mainly focused on long-term contracts, resulting in poor spot market transactions. On the price side, last Friday, the National People's Congress Standing Committee approved an increase of 6 trillion yuan in local government debt limits to replace existing implicit debt, and the Ministry of Finance issued a package of debt resolution policies, providing some support for copper prices at the bottom. However, the strong US dollar background is bearish for copper prices, and it is expected that copper prices will remain under pressure today.