SMM

The LME was closed due to the Christmas Day holidays. The most active SHFE 2402 copper contract prices opened at 69230 yuan/mt and finished at 69020 yuan/mt last evening, down 0.25%, with the low-end of 68970 yuan/mt and the high-end of 69400 yuan/mt. Trading volume was 30,000 lots, and open interest stood at 154,000 lots. On the macro front, there was a lack of relevant data during the overseas Christmas holidays, and Shanghai copper fell against the background of a light market in the last week of the year. In terms of fundamentals, from the supply side, the supply of goods that can be circulated in the market in East China has begun to decrease. Faced with the large discounts, many sellers may choose to directly deliver to warehouses in the future, which will further reduce the supply of goods in the market. However, The current overall supply is not tight. In terms of consumption, the price of copper is running at a high level, and the large discounts did not significantly increased the enthusiasm of downstream purchasing. Near the end of the year, buyers purchased as required. If copper prices continue to run at a high level, demand will continue to be under pressure. Copper prices will lack impetus to rise due to weak demand.