LME copper prices opened at $8407.5/mt overnight before reaching a high of $8480/mt, and closed at $8469.5/mt, a rise of 0.29%. Trading volumes were 20,000 lots and open interest stood at 267,000 lots. The most active SHFE 2401 copper contract prices opened at 68000 yuan/mt and finished at 68290 yuan/mt overnight, up 0.21%, with the low-end of 67960 yuan/mt and the high-end of 68330 yuan/mt. Trading volume was 30,000 lots and open interest stood at 163,000 lots.
On the macro front, the annual core PCE rate in the United States in October was in line with expectations at 3.5%, the lowest since April 2021. U.S. Treasury Secretary Yellen said that she does not believe that further radical monetary tightening is needed and that the United States will be well positioned to achieve a soft landing. In terms of fundamentals, the premiums and discounts in East China rose again yesterday. It is understood that the main reason was that a large buyer purchased goods the day before, which made the overall supply of goods tight. Although the willingness of downstream purchasing was suppressed, some companies needed to replenish their stocks and were forced to accept high premiums. Inventories in South China increased for four consecutive days. At the end of the month, downstream consumption was weak, but affected by sentiment in Shanghai, it also rose. In terms of consumption, cable companies delivered more orders to the State Grid in November. Therefore, even with high prices and high prices, companies still maintain rigid purchases and are less sensitive to prices. It is expected that copper prices will run strongly in the near future.
