SMM Morning Meeting Summary: On Friday evening, LME copper opened at $9,566/mt, touching a low of $9,532/mt shortly after the opening bell. It then fluctuated upward throughout the session, reaching a high of $9,654.5/mt near the close, and finally closed at $9,647.5/mt, down 0.44%. Trading volume reached 18,000 lots, and open interest reached 291,000 lots. On Friday evening, the most-traded SHFE copper 2507 contract opened at 77,910 yuan/mt, touching a low of 77,810 yuan/mt shortly after the opening bell. It then fluctuated upward throughout the session, reaching a high of 78,480 yuan/mt near the close, before pulling back slightly to close at 78,350 yuan/mt, down 0.06%. Trading volume reached 30,000 lots, and open interest reached 192,000 lots.

[SMM Analysis: Rebounding Copper Prices Boost Downstream Restocking Sentiment, but Losses Widen for Secondary Copper Rod Enterprises, Dampening Production Willingness] According to SMM survey data, the operating rate of secondary copper rod was 29.03% this week, down 3.05 percentage points WoW and 18.42 percentage points YoY. Meanwhile, the average price difference between copper cathode rod and secondary copper rod was 1,328 yuan/mt this week, widening by 243 yuan/mt MoM. In addition, the average discount of secondary copper rod in Jiangxi against copper futures was 734 yuan/mt, widening by 306 yuan/mt MoM...

[SMM Zinc Morning Comment] Overnight, LME zinc returned to positive territory after a decline, with the lower band of Bollinger Bands providing support. China and the US have initially reached the Geneva framework in trade negotiations, macro...

[SMM Morning Meeting Summary: Macro and Fundamentals in a Tug-of-War, SHFE Zinc Price Maintains Fluctuating Trend] Overnight, SHFE zinc recorded a small bullish candlestick, with the 5-day moving average acting as resistance above and the lower band of the Bollinger Bands providing support below. Progress was made in the China-U.S. trade negotiations...

》Check SMM copper quotes, data, and market analysis 》Subscribe to view historical price trends of SMM metal spot cargo SMM June 9 At 11:30 today, the futures closing price was 78,750 yuan/mt, down 10 yuan/mt from the previous trading day. The average spot premiums/discounts were 85 yuan/mt, up 10 yuan/mt from the previous trading day. Today, the price of secondary copper raw materials remained unchanged MoM. The price of bare bright copper in Guangdong was 72,700-72,900 yuan/mt, unchanged from the previous trading day. The price difference between copper cathode and copper scrap was 1,388 yuan/mt, remaining unchanged MoM. The price difference between copper cathode rod and secondary copper rod was 1,155 yuan/mt. According to the SMM survey, copper prices rose during the midday session. Suppliers of secondary copper raw materials responded quickly, raising their selling prices or even halting shipments. Many secondary copper rod enterprises stated that the abnormal fluctuations in copper prices were more due to the optimistic expectations surrounding the China-US trade negotiations. However, the market expects that the bullish sentiment will not last long.

[SMM Morning Meeting Summary]: Overnight, LME copper opened at $9,640/mt, touching a low of $9,603.5/mt in the early session before fluctuating considerably upward. It approached a high of $9,660/mt near the close and ultimately closed at $9,649/mt, up 0.11%. Trading volume reached 14,000 lots, and open interest stood at 284,000 lots. Overnight, the most-traded SHFE copper 2507 contract opened at 78,050 yuan/mt, fluctuating upward in the early session to touch a high of 78,220 yuan/mt during the session. It then fluctuated downward, touching a low of 77,960 yuan/mt, before rebounding slightly near the close to ultimately close at 78,140 yuan/mt, down 0.08%. Trading volume reached 26,000 lots, and open interest stood at 191,000 lots.

Driven by the significant positive developments in the new round of China-US trade negotiations, the shipping sector of the Hong Kong stock market continued its upward trend. As of press time, COSCO SHIPPING Development (02866.HK) rose by 3.67%, COSCO SHIPPING Ports (01199.HK) rose by 2.47%, and Qingdao Port (06198.HK) rose by 1.45%. Note: Performance of shipping stocks Meanwhile, CIMC Group (02039.HK), a global leader in containers, naturally benefited from this. Its intraday gain once exceeded 10%. It is worth noting that the group's stock price rose by 30% from April 9 to May 14. As of press time, CIMC Group rose by 4.29% to HKD 5.84. Note: Recent performance of CIMC Group Policy Easing Boosts Shipping In terms of news, on May 12, China and the US reached an agreement through talks in Geneva. The US will reduce tariffs on Chinese goods from 145% to 30% within 90 days, and China will also reduce tariffs on US goods from 125% to 10%. Subsequently, both China and the US adjusted relevant tariffs in recent days. Against this backdrop, US importers significantly increased their import orders from China this week. Data from multiple shipping companies and industry tracking showed that China's freight volume to the US has rebounded significantly. The global shipping digital platform Vizion disclosed shocking data: Within seven days after the agreement was reached, container bookings on the China-US route surged by 277%, from 5,709 TEUs to 21,530 TEUs. German shipping giant Hapag-Lloyd confirmed that its cabin bookings on the US-China route surged by 50% in three days. CEO Rolf Habben Jansen bluntly stated that "ship cabin space is about to sell out." Ryan Petersen, the founder of Flexport, even issued an urgent warning on social media: On the first day, ocean freight orders surged by 35%, and the crisis of port congestion loomed. Paul Brashier, Vice President of Global Supply Chain at ITS Logistics, a logistics company, said, "My clients have pre-loaded thousands of containers in China, ready for shipment." He expects a further surge in container shipping volume in the next four to six weeks. Goldman Sachs analysis pointed out that US importers, in order to seize the golden window of the 30% tariff, are launching an unprecedented stockpiling wave. China's export data may hit a record in Q3.

According to media reports, copper scrap that had been piling up for weeks in Salt Lake City, US, has finally started to clear, largely due to progress in the China-US trade negotiations. Affected by the previous trade disputes, copper scrap exports from the US had almost ground to a halt, resulting in up to 300,000 pounds of copper scrap being forced to accumulate in the yard of Utah Metal Works Inc. This copper scrap came from old air conditioners, demolished buildings, and rusty cars. Now, with the US and China temporarily reducing each other's tariffs, US scrap metal merchants are striving to resume copper scrap exports to China. Due to its durability, malleability, and electrical conductivity, copper has long been widely used in the construction, transportation, and power industries. In recent years, it has also been used in the manufacturing of EVs, green energy plants, and data centers. In recent years, as copper demand continues to rise while copper mine production becomes increasingly tight, copper scrap has played a crucial role in the global supply, accounting for about one-third of the total. For a long time, US copper scrap exports to China have been a vital part of the global copper supply chain. Last year, one-fifth of the copper scrap imports by Asian smelters came from the US. China is the world's largest producer of copper cathode, accounting for more than half of global production. As a major exporter of copper scrap, the US exported 600,000 mt of copper scrap last year, a scale comparable to some of the world's largest copper mines, with more than half of it sold to China. Although tariffs have temporarily decreased, it is still unclear whether this will be enough to prompt US merchants to re-export the accumulated copper scrap. Analysts point out that the profit margins for copper scrap import businesses are very thin, making it difficult to import copper at any tariff level. The trade disputes have disrupted the entire copper scrap market. Data shows that the price of No. 2 copper scrap supplied by the US has seen a discount of 92.5¢ per pound compared to futures prices, the largest price spread ever recorded. In addition to trade restrictions, the price structure of US copper scrap has also dampened the purchase willingness of international buyers. Due to previous threats by US President Trump to impose import tariffs on copper, US copper prices have been significantly higher than those in other parts of the world this year. Some commodity giants have taken advantage of this to export copper to the US from around the world, profiting from the price difference. The pricing of US copper scrap relies on the futures prices of the New York Mercantile Exchange (Comex). Faced with the relatively high prices, overseas buyers are generally deterred. Some traders have tried to shift their focus to other regions, such as Japan, but these markets are not enough to fill the gap left by China.

[5.12 Morning Meeting Minutes] Base metal prices generally rose on Monday as news emerged of substantive progress in trade negotiations between the US and China, alleviating concerns about a global recession to some extent. Another reason for the outstanding performance of nickel prices was the rumor that the Philippines planned to implement a ban on nickel ore exports starting next month, which could potentially lead to a shortage in nickel ore supply. However, SMM analysis suggests that the short-term impact on the nickel market may stem more from sentiment, and it may be difficult for this policy to have a fundamental impact on the nickel industry in the short term.

[SMM Zinc Morning Comment] Overnight, the LME zinc contract recorded a long upper shadow bullish candlestick, with the 40-day moving average acting as resistance above. Significant progress was made in the China-U.S. trade negotiations, and global stock markets rose...