SMM

Overnight, LME copper opened at $10,330/mt, initially dipped to a low of $10,330/mt, then fluctuated upwards, reaching a high of $10,508/mt during the session, before falling back to close at $10,359/mt, with a decline of 0.36%. Trading volume reached 30,000 lots, and open interest reached 348,000 lots. Overnight, the most-traded SHFE copper contract opened at 83,610 yuan/mt, initially peaked at 84,380 yuan/mt, then fluctuated downwards, reaching a low of 83,450 yuan/mt during the session, before closing at 83,620 yuan/mt, with a decline of 0.39%. Trading volume reached 90,000 lots, and open interest reached 210,000 lots. On the macro front, the preliminary S&P Global Composite PMI for the US in May exceeded expectations, rising to 54.4. Both the manufacturing and services PMI preliminary readings were higher than expected. Strong US business activity reduced the urgency for the US Fed to cut interest rates, leading to a rise in the US dollar index, which negatively impacted copper prices. On the fundamentals side, copper prices saw a significant decline yesterday, increasing market activity. According to SMM, although the price drop led to more market transactions, overall trading volume remained relatively low, with many market participants still on the sidelines. As of Thursday, May 23, SMM copper stocks across national mainstream markets increased by 12,300 mt from Monday to 415,100 mt, 296,700 mt higher YoY. In terms of prices, the high US dollar index, together with weak domestic demand, continued to pressure copper prices.