SMM

Overnight, LME copper opened at $8,915.5/mt, fluctuated rangebound in early trading, and slightly rose during the session to a high of $8,936.5/mt. The center shifted downward to a low of $8,859.5/mt, and LME copper closed at $8,885/mt, down 1.77%. Trading volume reached 19,000 lots, and open interest stood at 265,000 lots. Overnight, the most-traded SHFE copper 2502 contract opened at 73,650 yuan/mt, fluctuated upward in early trading, reaching a high of 73,870 yuan/mt during the session, then fluctuated downward to a low of 73,520 yuan/mt before closing at 73,540 yuan/mt, down 0.61%. Trading volume reached 17,000 lots, and open interest stood at 130,000 lots. Macro side, the US Q3 GDP was unexpectedly revised upward, and initial jobless claims fell more than expected. The US dollar index continued to strengthen. Meanwhile, cautious remarks from US Fed and ECB policymakers regarding further monetary easing heightened concerns over potential economic slowdown, putting pressure on copper prices. Fundamentally, while there were still arrivals of imported copper recently, domestic copper arrivals were relatively low. With moderate consumption, destocking continued during the week. According to the warehouse warrant daily report, nearly 10,000 mt of new warrants were registered at the Steinweg warehouse during the week, leading to continued destocking in the Shanghai region. As of Thursday, December 19, SMM data showed that copper inventories in major regions across China decreased by 4,400 mt WoW to 98,700 mt, down 23,600 mt compared to last Thursday. However, the destocking speed slowed during the week. In summary, with the US dollar remaining at a high level, copper prices are expected to face some resistance.