SMM

LME copper prices opened at $8630/mt and closed at $8621.5/mt last evening, down 0.31% with the high-end of $8704.5/mt and the low-end of $8591.5/mt. Trading volume was 29,000 lots and open interest stood at 284,000 lots. The most active SHFE 2403 copper contract prices opened at 69440 yuan/mt and closed at 69360 yuan/mt last evening, up 0.14%, with the high-end of 70000 yuan/mt and the low-end of 69310 yuan/mt. Trading volumes stood at 41,000 lots and open interest stood at 154,000 lots. On the macro front, U.S. ADP employment increased by 107,000 in January, which was less than the expected increase of 150,000. The U.S. index fell and copper prices surged higher. However, copper prices fell sharply later as Federal Reserve Chairman Jerome Powell said a rate cut in March was unlikely. In terms of fundamentals, from the supply side, imported copper continues to impact the domestic trade market, and the supply of copper is relatively abundant; in terms of consumption, basically all small factories were closed for CNY holiday, and only some large enterprises are still purchasing. Downstream purchasing interest was not strong, and demand is expected to continue to weaken before CNY. Due to the influence of macro sentiment, copper prices will move strongly in the near future.