SMM

Overnight, LME copper opened at $9,215.5/mt, initially dipped to $9,197/mt, then fluctuated upward, reaching an intraday high of $9,260/mt, and finally closed at $9,231.5/mt, up 1.53%, with a trading volume of 20,000 lots and an open interest of 274,000 lots. Overnight, the most-traded SHFE copper 2501 contract opened at 75,430 yuan/mt, initially dipped to 75,350 yuan/mt, then rose to an intraday high of 75,730 yuan/mt, and finally dropped back slightly to close at 75,570 yuan/mt, up 1.04%, with a trading volume of 40,000 lots and an open interest of 156,000 lots. Macro side, a New York Fed survey showed that US 1-year inflation expectations rose to 2.97% from the previous 2.87%. The US dollar index returned above the 106 mark, which exerted some pressure on copper prices but was relatively weak. Domestically, China's November CPI increased by 0.2% YoY and decreased by 0.6% MoM; PPI decreased by 2.5% YoY and increased by 0.1% MoM. Additionally, the Central Committee of the Communist Party of China stated in its Politburo meeting that the main economic and social development goals for the year will be successfully achieved, with the implementation of more proactive fiscal policies and moderately loose monetary policies, and strengthening extraordinary counter-cyclical adjustments, which boosted copper prices. Fundamentally, supply side, domestic copper arrivals remained low, and imported copper arrivals did not increase significantly, with supply relatively unchanged from last week. Demand side, copper prices still exhibited sideways movement, but the center shifted upward, with downstream buyers purchasing as needed, leading to overall average market transactions. According to SMM, as of Monday, Dec 9, SMM copper inventory in major regions nationwide decreased by 11,000 mt to 119,700 mt compared to last Thursday, but total inventory was 55,000 mt higher than the same period last year at 65,000 mt, with Shanghai inventory further destocking by 8,000 mt. Spot premiums were supported at the bottom. Price-wise, attention should still be paid to the suppressive effect of the US dollar index on copper prices. Copper prices are expected to fluctuate rangebound today.