SMM Morning Meeting Summary: Overnight, LME copper opened at and dipped below $13,693.5/mt, moved sideways at the beginning of the session, then the copper price center fluctuated upward and probed up to $13,969/mt near the end of the session, before fluctuating downward to finally close at $13,920/mt, up 2.84%, with trading volume at 26,800 lots and open interest at 272,000 lots, an increase of 1,201 lots from the previous trading day, indicating bulls adding positions. Overnight, the most-traded SHFE copper 2606 contract opened at 105,500 yuan/mt, dipped to 105,390 yuan/mt at the beginning of the session, then the copper price center gradually shifted upward and touched a high of 107,350 yuan/mt near the end of the session, before fluctuating downward to finally close at 106,770 yuan/mt, up 2.35%, with trading volume at 75,900 lots and open interest at 209,000 lots, an increase of 4,829 lots from the previous trading day, indicating bulls adding positions.

SMM Morning Meeting Summary: Last Friday evening, LME copper opened at $13,522.5/mt, fluctuated downward to $13,484.5/mt in early trading, then experienced wild swings reaching a high of $13,583/mt, before fluctuating downward to finally close at $13,535.5/mt, up 1.59%, with trading volume at 29,500 lots and open interest at 271,000 lots, down 1,154 lots from the previous trading day, indicating bears cutting positions. Last Friday evening, the most-traded SHFE copper 2606 contract opened at 104,500 yuan/mt, rose to 104,580 yuan/mt in early trading, then fluctuated downward to 103,690 yuan/mt, moved sideways near the end of the session to finally close at 104,200 yuan/mt, up 0.53%, with trading volume at 50,000 lots and open interest at 208,000 lots, down 1,584 lots from the previous trading day, indicating bears cutting positions.

Asian copper scrap supply is severely tight due to decline in the volume and quality of US exports due to recovering domestic consumption; depleted inventories from early-year copper price volatility; and China's tax compliance pressures restricting local scrap flows, which intensifies regional competition for imports. Boosted by bullish hoarding, pricing coefficients have defied expected corrections despite surging copper prices. Bare Bright Copper is currently converging around 98.5%, with No. 1 Copper at 97%-97.5%. Notably, No. 2 Copper coefficients have spiked "abnormally" to 95%-96%. This anomaly is primarily driven by high precious metal prices, as scrap batches rich in gold and silver impurities command high premiums, lifting the overall No. 2 Copper pricing benchmark.

[SMM Copper Anode] SMM expects the operating rate of China's copper anode enterprises to decline 2.58 percentage points MoM to 45.60% in May 2026, with ore-derived copper anode enterprises expected to see their operating rate decline 0.14 percentage points MoM to 74.82%; due to tight supply of tax-inclusive copper scrap, the operating rate of copper anode producers using scrap is expected to decline 3.58 percentage points MoM to 33.66%. (Referring only to the non-captive copper anode portion)

[SMM Copper Anode News] Due to policy tightening, tax-inclusive copper scrap supply is tight, and scrap-derived copper anode supply in China has decreased. China's smelter inventory levels have been declining continuously since 2026. SMM smelter copper anode days of inventories in April 2026 were 7.04 days, down 0.32 days MoM.

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,380.5/mt and then hovered at highs, touching a high of $13,449.5/mt before the center fluctuated downward. Near the end of the session, it tested a low of $13,283/mt and ultimately closed at $13,323.5/mt, down 0.51%, with trading volume at 17,000 lots and open interest at 272,000 lots, an increase of 4,370 lots from the previous trading day, indicating bears adding positions. Overnight, the most-traded SHFE copper 2606 contract opened at 103,300 yuan/mt, initially rising to 103,400 yuan/mt before the center fluctuated downward. Near the end of the session, it dipped to 102,580 yuan/mt and ultimately closed at 102,720 yuan/mt, down 0.27%, with trading volume at 37,700 lots and open interest at 197,000 lots, a decrease of 2,022 lots from the previous trading day, primarily indicating bulls reducing positions.