SMM

LME copper opened at $9,176/mt overnight, initially reaching a session high of $9,190/mt, hitting a session low of $9,110.5/mt, and finally closed at $9,157/mt, down 0.86%. Trading volume reached 18,000 lots, and open interest was 299,000 lots. The most-traded SHFE 2409 copper contract opened at 74,840 yuan/mt overnight, initially declining to a session low of 74,530 yuan/mt before rebounding to a session high of 75,200 yuan/mt, and finally closed at 75,000 yuan/mt, down 0.42%. Trading volume reached 56,000 lots, and open interest was 180,000 lots. Macro side, LME copper stocks increased to 236,700 mt as of this Tuesday, the highest level since September 2021, heightening market concerns about consumption. Additionally, market expectations of a higher probability of Trump's election success are seen as favorable for the dollar, pushing the US dollar index higher and suppressing copper prices. Fundamentals side, due to the continuous decline in copper prices, downstream buyers adopted a wait-and-see stance for fear of further price drops, leading to a decrease in procurement demand. If copper prices stabilize, consumption may slightly rebound. Price-wise, copper prices are expected to remain under pressure.