SMM, August 6: Metal Markets: As of the midday close, base metals on the domestic market were almost all up. SHFE copper rose 0.4%, SHFE aluminum rose 0.23%. SHFE lead edged up. SHFE zinc rose 1.49%. SHFE tin rose 0.26%. SHFE nickel fell 2.1%. In addition, the most-traded casting aluminum futures contract edged down, while the most-traded alumina contract rose 1.36%. The most-traded lithium carbonate contract fell 1.23%. The most-traded silicon metal contract rose 0.12%. The most-traded polysilicon futures contract fell 0.65%. Ferrous metals were mostly in the green. Iron ore rose 2%, rebar rose 0.67%, and HRC rose 0.53%. Stainless steel fell 1.51%. For coking coal and coke: the most-traded coking coal contract rose 0.74%, and the most-traded coke contract rose 1.99%. On the overseas base metals market, as of 11:42, LME metals were almost all down. LME copper fell 0.36%, LME aluminum rose 0.17%, LME lead fell 0.16%, LME zinc fell 0.37%. LME tin fell 1.58%. LME nickel fell 1.9%. In precious metals, as of 11:42, COMEX gold rose 0.44%, while COMEX silver fell 0.05%. On the domestic precious metals market: SHFE gold rose 3.72%, and the most-traded SHFE silver contract rose 3.19%. Additionally, as of the midday close, the most-traded platinum futures contract rose 1.05%, and the most-traded palladium futures contract rose 1.4%. As of the midday close, the most-traded container shipping futures (Europe route) contract fell 0.63% to 1,651 points. As of 11:42 on August 6, selected futures midday prices: Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong against the front-month contract: high-quality copper was quoted at 90 yuan/mt, down 20 yuan/mt from the previous trading day; standard-quality copper was at a premium of 10 yuan/mt, down 20 yuan/mt; and SX-EW copper was at a discount of 50 yuan/mt, down 20 yuan/mt. The average price of #1 copper cathode in Guangdong was 107,900 yuan/mt, up 910 yuan/mt from the previous trading day, and that of SX-EW copper was 107,820 yuan/mt, up 930 yuan/mt. In the spot market: Guangdong inventory increased again, mainly due to increased arrivals and weakening consumption... Macro Front China: [PBOC’s open market operations saw a net drain of 269.5 billion yuan today] The PBOC conducted 1 billion yuan of 7-day reverse repo operations at an interest rate of 1.40%, unchanged from the previous operation. Today, 270.5 billion yuan of reverse repos matured. [China Gold Association: In H1 2026, increase in domestic gold ETF holdings fell 66.17% YoY] Data from the China Gold Association showed that the increase in domestic gold ETF holdings in H1 2026 was 28.677 mt, down 66.17% from H1 2025. By the end of June 2026, the open interest of gold ETFs in China stood at 276.529 mt. China increased its gold holdings by 40.12 mt in H1 2026, bringing its gold reserves to 2,346.45 mt by month-end June, ranking fifth globally. The country had added to its gold reserves for 20 consecutive months, Nov 2024-Jun 2026. (Jin10 Data APP) On August 6, the central parity rate of the RMB in the interbank foreign exchange market was 6.7895 yuan per US dollar. US Dollar: As of 11:42, the US dollar index edged up 0.03% to 99.72. Cooling US ADP employment data contrasted with elevated ISM services costs, raising stagflation concerns. US ADP employment data missed expectations! The US ADP private payrolls increased by only 44,000 in July, the lowest this year, making Friday's non-farm payrolls data critical. US ADP private-sector employment rose by just 44,000 in July, a new low for the year and below expectations. The goods-producing sector was under pressure, signaling a cooling labour market. However, job-stayers' wages saw robust YoY growth of 7%, indicating persistent structural tightness. The market is focused on Friday's non-farm payrolls data; if it follows the same trend, it would confirm steady employment, supporting the Fed's continued focus on combating inflation. The US ISM Services PMI continued expanding in July, showing demand-side resilience but intensifying stagflation risks. The US ISM services index rose to 54.1 in July, a 0.1-point uptick from June but below the expected 54.5. The new orders index surpassed expectations to hit 57.2, and the prices paid index exceeded forecasts to reach 70.3, while the employment index fell short of expectations, dropping to 47.4 and into contraction territory. Rising costs alongside contracting employment presented stagflationary characteristics. The US Treasury kept its quarterly debt issuance size unchanged, with $40 trillion in debt pressure looming. The latest Treasury refunding statement maintained current auction sizes for coupon-bearing securities but changed the description for future issuance from "increases" to "adjustments," preserving flexibility for future policy shifts. The borrowing estimate for the current quarter was raised to $739 billion, with the total federal debt about to surpass $40 trillion. The Treasury continues to rely on short-term bills to bridge the gap, making financing costs more sensitive to interest rates. The market fears that delaying adjustments could trigger a larger shock from long-term debt issuance later. (From Wall Street Horizon APP) Data: Today will see the release of Switzerland's July seasonally adjusted unemployment rate, the Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM, among other data. To watch: Fed Governor Lisa Cook will speak on the economic outlook; 2027 FOMC voter and San Francisco Fed President Daly will deliver remarks. Crude Oil: As of 11:42, oil prices in both markets edged down, with US crude down 0.28% and Brent crude down 0.13%. The market is focusing on the progress of talks between Iran and Oman. Iranian Deputy Foreign Minister Gharibabadi said in an interview on August 5 that the agreement between Iran and Oman on merchant ship passage through the Strait of Hormuz is close to being finalised. According to local news from the Iranian side on the 5th, both the southern route through Omani territorial waters and the northern route within Iranian territorial waters will be closed, establishing a new passage model in the Strait of Hormuz that differs from the past 60 years. Additionally, Gharibabadi denied that Iran is in negotiations with the US, but stated that Iran has received messages from the US side, and said the US has expressed readiness to resume fulfilling commitments under the previously signed memorandum of understanding. (CCTV) On August 5 local time, US President Trump said in a speech at an event in Las Vegas that recent oil prices have fallen and stabilised to some extent, "We may have to let it go up again," but he "hopes it won't come to that." Trump did not elaborate on the meaning of this statement. An analysis by the Associated Press pointed out that although Trump has repeatedly assured that the war with Iran is about to end, oil prices typically rise anew with the onset of conflicts between the two sides. (CCTV International) Spot Market Overview: ► ► ► ► ► ► ► ► ►

SMM Morning Brief: Overnight, LME copper opened at $13,992/mt, dipped to $13,975.5/mt in early trading, then drifted higher to hit a high of $14,150/mt, before eventually settling at $14,148.5/mt, up 0.75%. Trading volume stood at 20,200 lots, and open interest increased to 253,000 lots, up 1,896 lots from the previous trading day, as bulls added positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,350 yuan/mt, with an intraday high of 107,840 yuan/mt and a low of 107,300 yuan/mt, and settled at 107,770 yuan/mt, up 0.40%. Trading volume was 38,600 lots, while open interest fell to 214,000 lots, down 2,688 lots from the previous trading day, as bears reduced positions.

SMM August 6 News: Metal market: Overnight, domestic base metals rose broadly. SHFE copper rose 0.56%. SHFE aluminum rose 0.29%. SHFE lead was flat at 15,640 yuan/mt. SHFE zinc rose 1.6%. SHFE tin rose 1.7%. SHFE nickel fell 0.17%. Additionally, the most-traded alumina futures rose 2.56%, and the most-traded casting aluminum contract rose 0.13%. Overnight, ferrous metals mostly rose. Stainless steel fell 0.72%. Iron ore rose 1.85%. Rebar rose 0.74%. Hot-rolled coil rose 0.53%. Coking coal and coke: The most-traded coking coal contract rose 0.94%, and the most-traded coke contract rose 0.56%. Overnight, in the overseas market, LME base metals rose broadly. LME copper rose 0.75%. LME aluminum rose 0.81%. LME lead was flat at $1,890/mt. LME zinc rose 2.31%. LME tin rose 2.1%. LME nickel edged down 0.06%. Overnight precious metals : COMEX gold rose 3.74%, and COMEX silver rose 3.34%. Overnight, SHFE gold most-traded rose 3.58%, and SHFE silver most-traded rose 3.72%. OANDA Senior Market Analyst Kelvin Wong said, "The link between gold and oil prices remains, as oil prices have a huge impact on inflationary pressures in the global economy. If we can see a clear roadmap for further de-escalation of the (Middle East) situation, gold prices could continue to rise." Traders now expect a 59% probability of a Fed rate hike at the September 15-16 policy meeting, down from 67% a day earlier. (Jin10 Data APP) Overnight closing quotes as of 7:11 on August 6: Macro front Domestic: [Foreign Ministry: Firmly Opposes US Abusing National Power to Unreasonably Suppress Chinese Enterprises] In response to reports that the US is drafting regulations to suppress Chinese enterprises, Foreign Ministry spokesperson Lin Jian stated on the 5th when answering a reporter's question that China firmly opposes the US abusing its national power to unreasonably suppress Chinese enterprises. A reporter asked: It is reported that the US is drafting regulations to ban the import of China-made new-type optical transceiver modules and is preparing to impose additional tariffs and set a price floor on polysilicon and related products. Given the US's previous sanctions and restrictions on Huawei, how does China assess the planned US actions? What specific measures will be taken to protect the rights and interests of Chinese enterprises? Lin Jian said, China firmly opposes the US overstretching the concept of national security and abusing its national power to unreasonably suppress Chinese enterprises. Protectionism cannot boost US competitiveness. The US's actions severely hinder normal economic and trade exchanges between China and the US and are not in the interests of any party, including US enterprises and consumers. China will continue to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises. (Xinhua News Agency) [Guangxi: Trade-in Policy Boosts Smart Home Appliance Consumption] With the implementation of national subsidies combined with local expansion policies coinciding with the summer consumption peak season, the Guangxi home appliance market welcomed a new round of consumption boom. During visits, it was found that the trade-in policy continued to gain momentum, smart home appliances accelerated their entry into millions of households, and consumption upgrading trends were evident. Since the beginning of this year, Guangxi's consumer goods trade-in program has subsidized 2.061 million units of digital and smart products, 95,000 vehicles, and 2.553 million units of home appliances, with total subsidy funds of 2.96 billion yuan, boosting commodity sales of 26.7 billion yuan. Among these, the proportion of county-level participants reached 45.2%, and the proportion of subsidy amount enjoyed in rural areas accounted for 37.1%, indicating rural consumption potential was being rapidly released. Hong Tao, director of the Institute of Business Economics at Beijing Technology and Business University, stated that the trade-in policy, on the basis of continued policy support, has upgraded to a "demand + experience" dual-drive. The national, local, and enterprise levels have established a triple subsidy linkage system, reducing household replacement costs and stimulating consumption vitality while helping the whole society save energy and reduce carbon, promoting the popularization of green and low-carbon lifestyles. (Xinhua News Agency) [CAAM Initiates Establishment of Autonomous Driving Industry Development Joint Committee] Hosted by CAAM, the 16th China Auto Forum was held in Jiading, Shanghai. During the forum, CAAM officially announced the initiation of the establishment of the "Autonomous Driving Industry Development Joint Committee" and held the launching ceremony. At the ceremony, CAAM stated that the Joint Committee will adhere to the principle of "taking safety as the bottom line, with innovation as the driving force, and using coordination to promote development," working with all industry parties to jointly promote the safe, orderly, and large-scale development of China's autonomous driving industry, contributing industrial strength to building an automotive powerhouse and cultivating new quality productive forces. The Joint Committee sincerely invites OEMs, autonomous driving solution providers, chip and sensor companies, software and communication firms, testing and certification agencies, universities, and research institutes, and other relevant industry chain entities to join in discussing development plans, building collaborative mechanisms, and sharing industrial achievements. (CAAM) [DCE: Coke Options to Be Listed for Trading from September 2, 2026 (Wednesday)] The DCE announced that coke options will be listed for trading starting September 2, 2026 (Wednesday). The position limit for coke options is 5,000 lots. Coke options and coke futures have separate position limits. The combined buy holdings of all call options and sell holdings of all put options, as well as the combined buy holdings of all put options and sell holdings of all call options, in an options contract of a certain month for non-futures company members and clients, must not exceed the position limit for the options product. Positions deemed as acting in concert shall be aggregated for calculation. [CPCA: Preliminary Estimates Show July National Passenger Car Market Retail Sales at 1.506 Million Units, Down 18% YoY] Preliminary data from the China Passenger Car Association (CPCA) showed that from July 1 to 31, national passenger car market retail sales totaled 1.506 million units, down 18% YoY and down 6% MoM. Year-to-date cumulative retail sales reached 10.207 million units, down 20% YoY. National passenger car wholesale volumes by automakers from July 1 to 31 were 2.241 million units, up 1% YoY but down 5% MoM, with year-to-date cumulative wholesale volumes at 14.788 million units, down 5% YoY. (from Wall Street News APP) Dollar: Overnight, the US dollar index extended the decline of the previous trading day to fall 0.17% to 99.69. US private employment growth in July was significantly below expectations, indicating that labor market momentum had cooled somewhat, but wage growth remained resilient, and the overall employment situation remained stable. Data released by ADP Research Institute on Wednesday showed that private sector employment increased by 44,000 in July, below the 65,000 expected in a Bloomberg survey of economists and the lowest level this year, following a revised figure of 95,000 in June. The US government's non-farm payrolls report to be released on Friday is closely watched by the market. If the data is confirmed, the current employment trend would support the Fed's continued focus on still-high inflation. (Wall Street News) Driven by a rebound in new orders and business activity, the US services sector maintained a stable expansion trend in July. Data released on Wednesday showed that the July ISM Services Index rose 0.1 point to 54.1, with a reading above 50 indicating expansion. The new orders growth rate accelerated, and the gauge of business activity rose to a five-month high, indicating consumer demand remained resilient. However, rising service and material costs continued to pressure enterprises. As the temporary deal between the US and Iran broke down, driving crude oil and gasoline prices higher, the ISM Prices Paid Index surged to 70.3 in July. With persistently high costs squeezing corporate profits and affecting consumer spending, some companies may choose to delay hiring. The employment gauge of the institute indicated the most pronounced contraction in employment since March. (Jin10 Data APP) Fed Governor Cook reiterated her stance: if inflation does not slow, she is prepared to raise rates , and warned that policymakers may not have the luxury of waiting for inflation to return to the 2% target. Although Cook supported the Fed's decision to hold rates steady at the July policy meeting, she warned that the longer inflation remains above the Fed's target, the harder it will be to tame. In a speech at an event in Alaska, Cook said, "If I don't see signs that inflation is sustainably declining soon, I am ready to act. With inflation above target for five consecutive years, the risk that inflation becomes entrenched in price- and wage-setting behaviour is rising, which would lead to more persistent inflation that is harder to address." But Cook stated that the fading impact of tariffs, the possibility of lower oil prices, and the easing of pressures related to the AI boom could provide a buffer for inflation, thereby avoiding the need to tighten policy . She said her top priority remains bringing inflation back to the Fed's target. In an interview with CNBC on Wednesday, 2026 FOMC voting member and Minneapolis Fed President Kashkari stated that the Fed should now "start gradually raising" rates to lower inflation and avoid the need for more aggressive hikes in the future. Kashkari was one of three voting members who supported a 25-basis-point rate hike at last week's FOMC meeting. He said that with strong corporate earnings and resilient consumers and labor market, there is no evidence that monetary policy is clearly restrictive, making it time to start gradually raising rates. He stressed that this is not advocating for large rate hikes, but rather hoping for "small steps" to avoid the need for sharp policy tightening in the future if inflation becomes entrenched. He added that he is unsure what action the FOMC will take in September, and incoming data will play a key role. Meanwhile, Kashkari said that Fed Chairman Warsh did not pressure him, once telling him: "Do what you think is right for the economy." (Jin10 Data APP) According to CME's "FedWatch": The probability of the Fed holding rates unchanged in September is 45.6%, while the probability of a cumulative 25-basis-point rate hike is 54.4%. For October, the probability of no change is 33.5%, a cumulative 25 bps hike is 52.1%, and a cumulative 50 bps hike is 14.5%. Macro: Today, data to be released include Switzerland's July seasonally adjusted unemployment rate, Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM. Focus on: Fed Governor Lisa Cook's speech on the economic outlook; 2027 FOMC voting member and San Francisco Fed President Daly's speech. Crude oil: Overnight, oil futures showed mixed performance, with WTI falling 0.91% and Brent edging up 0.08%. Iran and Oman are expected to reach an agreement to reopen the Strait of Hormuz, calming oil prices. Wall Street News mentioned that Iran systematically disclosed more details about negotiations with Oman on new transit arrangements for the Strait of Hormuz for the first time and publicly explained the latest contacts between the US and Iran regarding the strait's reopening. On Wednesday, the 5th local time, Iranian Deputy Foreign Minister Gharibabadi said that Iran and Oman are working on a new arrangement for the Strait of Hormuz that differs from the past 60 years. According to the new route design, commercial vessels, whether entering or exiting the strait, would need to pass through Iranian territorial waters in some sections. According to CCTV News, he stressed that arrangements related to the strait should be decided solely by Iran and Oman, and Iran would never accept the involvement of any external forces. (Wall Street News) The US exported a record volume of distillate fuel overseas last week while domestic inventories fell again, indicating that the global scramble for diesel is increasingly drawing down US supplies. According to data released by the US Energy Information Administration (EIA) on Wednesday, distillate fuel exports rose to 1.9 million barrels per day last week, the highest level on record, surpassing the previous peak set in May. Distillate fuels mainly include diesel, heating oil, and other products. At the onset of the US-Iran war, the global diesel market was thrown into disarray. Global fuel supply was disrupted as crude and product tankers could not pass through the Strait of Hormuz. Since then, months of Ukrainian attacks on Russian refining facilities further exacerbated supply pressures. This has made the US one of the few countries globally with sufficient diesel production capacity to churn out large volumes of fuel and export it overseas. US diesel exports have exceeded 1.5 million barrels per day for five consecutive weeks. Even with refiners running at full throttle to produce diesel, US fuel stockpiles are still falling. As of last week, distillate fuel inventories, on a seasonally adjusted basis, had dropped to the lowest level for the same period since 1996. (Jin10 Data APP)

SMM, Aug 5: Metals market: As of the midday close, domestic base metals rose almost across the board. SHFE copper rose 0.79%, SHFE aluminum rose 0.15%. SHFE lead rose 2.61%. SHFE zinc rose 1.38%. SHFE tin rose 0.5%. SHFE nickel fell 0.78%. In addition, foundry aluminum most-traded futures were flat at 23,365 yuan/mt, alumina most-traded contract rose 0.99%, lithium carbonate most-traded contract rose 1.45%, silicon metal most-traded contract rose 0.72%, and polysilicon most-traded futures rose 1.83%. Ferrous metals mostly rose. Iron ore rose 0.93%, rebar rose 0.34%, hot-rolled coil rose 0.5%. Stainless steel fell 2.09%. Coking coal and coke: coking coal most-traded contract rose 3.27%, and coke most-traded contract rose 2.13%. In overseas base metals, as of 11:45, LME metals broadly rose. LME copper was flat at $14,043/mt, LME aluminum rose 0.22%, LME lead rose 0.71%, LME zinc rose 0.59%, LME tin rose 0.13%, and LME nickel fell 0.2%. Precious metals: as of 11:45, COMEX gold rose 0.8% and COMEX silver rose 1.33%. Domestic precious metals: SHFE gold rose 1.92%, and SHFE silver most-traded contract rose 5.35%. In addition, as of the midday close, platinum most-traded futures rose 7.04%, and palladium most-traded futures rose 6.01%. As of the midday close, the most-traded European container shipping freight index futures contract fell 8.96% to 1,635 points. As of 11:45 Aug 5, selected futures midday quotes: Spot and Fundamentals Copper: Spot prices of #1 copper cathode in Guangdong against the front-month contract: high-quality copper quoted at 110 yuan/mt, up 10 yuan/mt from the previous trading day; standard-quality copper quoted at a premium of 30 yuan/mt, up 30 yuan/mt; SX-EW copper quoted at a discount of 30 yuan/mt, up 30 yuan/mt. The average price of #1 copper cathode in Guangdong was 106,990 yuan/mt, up 450 yuan/mt, and SX-EW copper averaged 106,890 yuan/mt, up 460 yuan/mt. Spot market: Guangdong inventories ended a two-day rising streak and declined again, mainly due to fewer arrivals... Macro Front China: [PBOC net drains 201.5 billion yuan from the open market today] The PBOC conducted 5 billion yuan of 7-day reverse repos, with an operation rate of 1.40%, unchanged from last. Today, 206.5 billion yuan of reverse repos mature. US Dollar: As of 11:45, the US dollar index fell 0.05% to 99.82. Oil prices fell further, with markets betting that the tight energy supply situation will ease, potentially reducing inflationary pressures, and cooling expectations for US Fed interest rate hikes. (Wall Street CN) According to the CME "FedWatch," the probability that the US Fed will keep rates unchanged in September is 41.6%, while there is a 58.4% probability of a cumulative 25bp rate hike. For October, the probability of rates staying unchanged is 30.5%, with a 53.9% probability of a cumulative 25bp hike and a 15.5% probability of a cumulative 50bp hike. (Jin10 Data APP) "Fed mouthpiece" Nick Timiraos wrote that US Treasury Secretary Bessent’s policy reaction function has shifted to a less dovish stance. His remarks this year suggest that the Fed should continue to hold rates steady. Earlier this year, Bessent cited models showing that the Fed’s policy rate could be anywhere from more than 25bp to over 100bp above the neutral rate. Today (August 4), he put forward two points. He first defended Warsh’s decision last week not to articulate any policy reaction function: "I believe every meeting should be open, and market participants should judge for themselves... I think Warsh wants to keep his options open to achieve the best outcome." Secondly, he did propose a policy reaction function that could be seen as dovish, arguing that near-term shocks should be ignored: "What exactly will be the impact of rising short-term rates? We’ll have to wait and see." He raised this question, but then responded by noting that underlying inflation is "very mild... very steady." "In core inflation, after stripping out the more volatile components influenced by energy, the rest has been very steady. I expect this to continue." (Jin10 Data APP) On the economic data front, US job openings declined somewhat in June, but hiring rebounded slightly, indicating that labour market demand remained relatively stable. eToro’s Bret Kenwell noted that this Friday’s non-farm payrolls report will be the next key period: "If the data is strong, especially amid still-elevated inflation, it will reinforce expectations for a September rate hike; but if the data is weak, combined with last week’s lower-than-expected GDP growth, it could provide more justification for the Fed to stay on hold." (Wall Street CN) Data: Today will see the release of France’s June industrial production m/m, final July services PMIs for France, Germany, the Eurozone, and the UK, Eurozone June PPI m/m, US July ADP employment change, final US July S&P Global services PMI, and US July ISM non-manufacturing PMI, among other data. Watch: 2028 FOMC voter and Kansas City Fed President Schmid will speak on the Fed, monetary policy, and the agricultural economic outlook. Crude Oil: As of 11:45, oil prices in both markets extended the declines from the previous two trading days, continuing to fall, with WTI down 1.36% and Brent down 1.06%. Qatar stated that both the US and Iran are optimistic about an agreement to reopen the Strait of Hormuz, and the relevant proposal has been drafted. US Treasury Secretary Bessent publicly stated that the agreement could be finalized on Tuesday or Wednesday. Affected by this, crude oil futures continued their downward trend. The Strait of Hormuz is a critical chokepoint for global energy supply; if reopened, it is expected to promote the normalization of global oil supply. According to Xinhua News Agency, Iranian Foreign Ministry spokesperson Baqaei said on August 4 that Iran is still in negotiations with Oman over the Strait of Hormuz, with "positive progress" on technical and political levels. US Treasury Secretary Bessent stated that an agreement could be reached as soon as Tuesday or Wednesday this week. According to a report by the US news website Axios on August 4, regional sources and US officials indicated that the US, Iran, and Oman are "close to reaching" an interim agreement to reopen the Strait of Hormuz, and the US side hopes to announce the deal on August 5. (From Wallstreetcn APP) Spot Market: ► ► ► ► ► ► ► ► ► ► ►

SMM Aug 5: Overnight, LME copper opened at $14,012/mt, dipped to $13,871.5/mt before rebounding to a high of $14,117/mt, and finally closed at $14,043.5/mt, up 1.41%. Trading volume was 30,300 lots, while open interest rose to 251,000 lots, up 2,793 lots from the previous session, reflecting increased long positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,490 yuan/mt, hit a session high of 107,500 yuan/mt and a low of 106,900 yuan/mt, and closed at 107,040 yuan/mt, up 0.37%. Trading volume stood at 46,500 lots, and open interest increased to 211,100 lots, up 1,601 lots from the previous session, reflecting increased long positions. On the macro front, US Treasury Secretary Bessent said the US and Iran could reach an agreement on Wednesday Eastern Time, with the Strait of Hormuz expected to reopen soon. Iran's talks with Oman also made positive progress, and Iran is reportedly considering allowing Europe to participate in mine-clearing in the strait. As a result, international oil prices pulled back sharply, dampening market expectations for multiple US Fed rate hikes this year and thus lifting copper prices. However, cargo ships continued to be attacked in the Red Sea and the Strait of Hormuz, and geopolitical risks have yet to fully subside. On the fundamentals side, supply tightness has further eased as arrivals of both domestic and imported copper cathode have picked up recently. Demand side, under the traditional consumption off-season, end-user orders remained weak. Coupled with high copper prices, end-users continued to restock mainly on a need-to basis. Overall, copper prices are expected to consolidate higher today.

SMM Morning Meeting Minutes: Overnight, LME copper opened at $14,012/mt, dipped to $13,871.5/mt before rebounding, hit a high of $14,117/mt, and finally closed at $14,043.5/mt, up 1.41%; trading volume was 30,300 lots, with open interest rising to 251,000 lots, an increase of 2,793 lots from the previous trading day, indicating increased long positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,490 yuan/mt, reached a high of 107,500 yuan/mt, dipped to a low of 106,900 yuan/mt, and finally closed at 107,040 yuan/mt, up 0.37%; trading volume was 46,500 lots, with open interest rising to 211,100 lots, an increase of 1,601 lots from the previous trading day, indicating increased long positions.