LME copper prices closed at $8,378/mt overnight, down 1.39%. Trading volumes were 33,000 lots and open interest stood at 285,000 lots. The most active SHFE 2309 copper contract finished at 68,190 yuan/mt overnight, down 1.03%. Trading volume was 617.29,000 lots, and open interest stood at 172,000 lots.
On the macro front, the market is nervous about the outlook for global economic growth, which may be much weaker than expected, driving capital inflows into the U.S. dollar, and the U.S. dollar index rose. In addition, Philadelphia Fed Chairman believes that the U.S. economy is on a steady decline track, and the Fed may have reached a stage where it can keep interest rates stable, and it is more likely that the economy will achieve a soft landing.
In terms of fundamentals, affected by the source of imported goods, the spot goods in east China are relatively abundant, and the spot quotes continued to decline yesterday. It is expected that there will be continuous inflow of imported copper in the near term, and the delivery is approaching. Spot quotes are expected to continue to be under pressure; the inventory in south China fell yesterday, mainly due to the lack of arrivals. Spot quotes in South China also continued to decline. In terms of consumption, demand is expected to be weak in the near future. Copper prices are expected to be under pressure.
