Copper Prices Plummet Amid Stronger US Dollar
Copper prices suffered a sharp decline in both domestic and international markets, weighed down by a stronger US dollar and dual weakness in supply and demand. According to SMM Copper Morning Comment, the London Metal Exchange (LME) copper opened at $13,740/mt on July 24, touching a high of $13,764/mt before shifting lower to settle at $13,566/mt, down 1.74%. Trading volume reached 20,000 lots, and open interest stood at 247,000 lots.
The Shanghai Futures Exchange (SHFE) copper contract also fell, opening at 105,100 yuan/mt, briefly rising to 105,290 yuan/mt before moving straight down to touch a low of 104,310 yuan/mt. The contract later moved sideways and settled at 104,530 yuan/mt, down 1.4%. Trading volume reached 67,600 lots, and open interest stood at 212,000 lots.
The decline in copper prices was attributed to the strengthening US dollar, which rose due to expanding fears of Middle East conflicts, the implementation of tariff policies, and strong jobs data. On the supply side, available materials increased, leading to a marginal weakening of the low-inventory support logic. The demand side was constrained by off-season consumption and high copper prices, resulting in sluggish downstream purchasing.