LME copper prices opened at $8406/mt and closed at $8440/mt in last Friday trading, a gain of 0.51%, with the low-end of $8363/mt and the high-end of $8444/mt. Trading volume was 12,000 lots, and open interest stood at 263,000 lots. The most active SHFE 2401 copper contract prices opened at 67990 yuan/mt and finished at 68460 yuan/mt last Friday evening, up 0.04%, with the low-end of 67730 yuan/mt and the high-end of 68110 yuan/mt. Trading volume was 22,000 lots and open interest stood at 160,000 lots.
On the macro front, European Central Bank President Lagarde said that the fight against inflation is not over yet; a lot of work has been done on interest rates and it can now be observed. In addition, U.S. business activity was stable in November, but private sector employment indicators fell, in line with market expectations for an economic slowdown in the fourth quarter. On Fundamentals, as of Friday November 24, SMM copper inventories across major Chinese markets stood at 57,000 mt, up 7,200 mt from two Fridays ago and 56,400 mt lower than the same period last year. Specifically, the increase in inventories in East China is mainly due to the arrival of imported copper and high prices inhibiting downstream consumption. Inventories in South China declined, mainly due to the impact of maintenance and production cuts at surrounding refineries, which may be difficult to improve in the short term. In terms of consumption, the current premiums are still at a high level, and demand is still suppressed. The pressure on copper weakened due to a lower US dollar.
