Copper Prices Climb on Tight Supply and Easing Inflationary Pressure

The Shanghai Metals Market (SMM) reported that the SHFE copper night session closed higher on September 23, despite some fluctuations throughout the trading day. The LME copper opened at $14,782.5/mt and reached a high of $14,799/mt before drifting lower to $14,728/mt.

The price then rebounded again and closed at $14,783/mt, up 0.81%. Trading volume was 20,500 lots, while open interest stood at 264,000 lots, down 3,223 from the previous day, indicating bears reduced positions.

The most-traded SHFE copper contract opened at 111,840 yuan/mt and hit a high of 111,490 yuan/mt before moving sideways to close at 111,610 yuan/mt, up 0.35%. Trading volume was 22,600 lots, while open interest stood at 142,300 lots, down 4,459 from the previous day.

Copper prices were supported by tight domestic spot supply and a decrease in crude oil prices, which eased inflationary pressure. The US and Iranian officials held a productive meeting, with Trump stating they would meet again soon and believed an agreement could be reached after the midterm elections.