SMM

LME copper opened at $8,881/mt overnight, initially dipped to $8,872/mt, then climbed throughout the session, reaching a high of $9,024.5/mt near the close, and finally settled at $9,024/mt, up 0.18%. Trading volume reached 34,000 lots, and open interest was 280,000 lots. The most-traded SHFE copper 2412 contract opened at 73,150 yuan/mt overnight, initially dipped to 73,060 yuan/mt, then climbed throughout the session, reaching a high of 73,770 yuan/mt, and consolidated sideways near the close, finally settling at 73,610 yuan/mt with no change. Trading volume reached 40,000 lots, and open interest was 150,000 lots. Macro side, the US October PPI year-on-year recorded 2.4%, higher than the expected 2.3%, with the previous value revised up from 1.8% to 1.9%. Initial jobless claims for the week ending November 9 in the US recorded 217,000, the lowest since the week ending May 18, 2024. Fed Chairman Powell stated that the recent US economic performance has been very good, indicating that the Fed does not need to rush to cut interest rates. Kugler mentioned that if progress in reducing inflation stalls, it might require pausing interest rate cuts, which may stabilize copper prices. Fundamentally, yesterday was the last day of the "Asia Copper Week" conference, and most market participants were inactive. However, due to the continuous decline in copper prices, downstream demand performed well, and social inventories kept decreasing. According to SMM data, as of Thursday, November 14, SMM copper inventories in major regions nationwide decreased by 114,000 mt compared to Monday to 164,000 mt, and decreased by 28,000 mt compared to last Thursday, marking the fourth consecutive week of weekly destocking, with the destocking speed accelerating. Price side, current copper prices are mainly suppressed by the strengthening US dollar. Due to Powell's speech in the morning, the US dollar index might rise again. Copper prices are expected to fluctuate at low levels today, with continued attention needed on macro sentiment.