SMM

LME copper prices opened at $8581.5/mt overnight before reaching a low of $8544.5/mt and a high of $8650/mt, and closed at $8642/mt, a rise of 0.75%. Trading volumes were 22,000 lots and open interest stood at 280,000 lots. The most active SHFE 2403 copper contract prices opened at 69110 yuan/mt and finished at 69370 yuan/mt overnight, up 0.49%, with the low-end of 68960 yuan/mt and the high-end of 69430 yuan/mt. Trading volume was 31,000 lots and open interest stood at 153,000 lots. On the macro front, the IMF raised its global economic growth forecast to 3.1% in 2024 and 2.9% in October 2023, which boosted market sentiment. In addition, the Houthi armed commander said that the group is ready for a "long-term confrontation" with the United States and Britain, and the tense situation pulled commodities higher. In terms of fundamentals, from the supply side, imported copper began to flow into the domestic trade market, which had an impact on spot premiums and discounts, and supply continued to be ample at the end of the year. From the consumer side, many companies have closed for CNY holidays at the end of the month, and some companies that have not closed are bearish on the market outlook. The market's overall purchasing willingness was not strong, and it is expected that demand will be difficult to pick up before the CNY. The copper prices will remain at high levels.