US Fed's Interest Rate Cut Expectations Weaken, US Dollar Index Rises, Copper Prices Open Lower [SMM Copper Morning Comment]

SMM, November 22: LME copper opened at $9,038.5/mt overnight. Initially, the price rose to $9,086/mt, then fluctuated widely, hitting a low of $9,002/mt before rebounding to close at $9,023/mt, down 0.65%. Trading volume reached 16,000 lots, and open interest was 269,000 lots. The most-traded SHFE copper 2501 contract opened at 74,110 yuan/mt, peaked at 74,250 yuan/mt initially, then declined to a low of 73,800 yuan/mt, and finally closed at 73,840 yuan/mt, down 0.89%. Trading volume was 33,000 lots, and open interest was 143,000 lots. On the macro front, US Fed's Goolsbee reiterated support for further interest rate cuts and expressed openness to acting at a slower pace. Market expectations suggest fewer rate cuts next year, leading to a rebound in the US dollar index, which pressured copper prices. Fundamentally, market consumption remained stable overall. In terms of supply, although smelter inventories were low and social inventories decreased, there was a significant inflow of imported copper during the week. As of Thursday, November 21, SMM national mainstream copper inventories increased by 2,100 mt to 161,300 mt compared to Monday but decreased by 3,000 mt compared to last Thursday, marking the fifth consecutive week of weekly destocking, although the destocking speed has slowed. Overall, the strong US dollar index is expected to exert some resistance on copper prices today. Attention should be paid to the routine policy briefing; if any favourable macro policies are released, market sentiment may improve. [Reproduction must retain the source - SMM] US Fed's Rate Cut Expectations Weaken, US Dollar Index Rises, Copper Prices Open Lower [SMM Copper Morning Comment] https://hq.smm.cn/copper/content/103051960