News summary
Electrolytic copper prices surged this week, with spot copper prices rising to 81945 yuan/ton on Thursday, a weekly increase of 2.5%.bingostorybingogames.66%。Cooling overseas inflation and tightening inventories drove copper prices up. The market outlook for next week is bullish, and Luntong is concerned about the pressure level of US$11000/ton.
Newsletter text
The copper spot market performed strongly this week, with a significant increase since the previous period. The price of copper was 81945 yuan/ton, an increase of 2125 yuan/ton from the previous period and a month-on-month increase of 2.2%.bingostorybingogames.66%, and the average weekly price was 81023 yuan/ton, a month-on-month increase of 0.68%. [Copper prices continue to hit new highs] Current copper prices have reached levels since 2006bingostorybingogamesAt a record high, the U.S. CPI fell by 3.6% year-on-year, the lowest level in three years. The market raised expectations of the Federal Reserve to cut interest rates, and the CPI rekindled expectations of interest rate cuts, resulting in strong upward momentum in copper prices. [Analysis of Driving Factors] Copper Prices RisebingostorybingogamesDriving factors include cooling overseas inflation and squeezing effects. U.S. PPI data shows a strong recovery in the manufacturing industry. Although the job market has cooled and market expectations for interest rate cuts have dropped, resulting in a weakening of macro push for copper prices. On the supply side, China's imports of copper ore and concentrates increased by 0.1% year-on-year in April. Cumulative imports from January to April increased by 6.9% year-on-year, and its dependence on overseas is close to 80%. Refined copper output has not been significantly affected, but processing fees have fallen, resulting in tightening market supply. On the demand side, the growth of social inventories has slowed down, part of copper demand has been suppressed and released by high prices, and downstream stocks have been replenished on dips, and demand is weak. [Market Outlook for Next Week] Looking forward to next week, copper prices will still have high upward momentum against the background of stronger market expectations and gradual contraction of supply ports. Luntong is concerned about the first-line pressure of US$11000/ton, and temporarily looks at the first-line support level of US$10000/ton.
