SMM

LME copper opened at $9,047/mt overnight, initially dipping to $9,022.5/mt before fluctuating upward to a high of $9,123.5/mt at the close, finally settling at $9,117/mt with an open interest of 273,000 lots. The most-traded SHFE copper 2501 contract opened at 73,980 yuan/mt, initially dipping to 73,930 yuan/mt before fluctuating upward to a high of 74,320 yuan/mt at the close, finally settling at 74,280 yuan/mt, up 0.32%, with a trading volume of 20,000 lots and an open interest of 134,000 lots. Macro side, US Fed official Schmid stated that a larger fiscal deficit would not trigger inflation as the Fed would take preventive measures, although this might mean higher interest rates. Meanwhile, the Bank of Japan might defend a rate hike in its policy review next month. The US dollar index continued to weaken, which is favorable for copper prices. Fundamentally, copper prices rose, but downstream purchasing sentiment was weaker than the previous day. Overall supply and demand remained in a weak balance, and there was a significant inflow of non-registered imported cargo recently, leading to an expected slight decline in spot premiums. In summary, with the US dollar index weakening and stable consumption, copper prices are expected to find some support today.