Copper price recovers RMB60000 level, short-term or continuous high volatility.

[Seebest Cable News by Mr. Daniel Yao at 09:00 am GMT+08, July 09th, 2022, the news from Cable abc.com]

The copper price recovered 60,000 level overnight, and the market trading was active, and the mood improved. Looking for support, the main futures contract of Shanghai copper stopped falling on Thursday and opened sharply higher on Thursday night. On the whole, the macro sentiment eased, and the short sellers closed their positions with profits, leading to a rebound in copper prices.

On the macro level, the minutes of the Federal Reserve meeting in June showed that even if the US economy slows down, interest rates may still need to keep rising for a longer period of time to prevent high inflation from becoming entrenched. In the minutes of the meeting, participants described the labor market as "overheating", which seemed to cast a ray of hope for the future. The whole meeting minutes will focus on "inflation". All changes in monetary policy will take inflation as the most critical consideration standard, while labor market and economic development will be of secondary importance.

In terms of fundamentals, according to the 56 sample enterprises surveyed by Mysteel, the total capacity is 13.525 million tons. In June 2022, the national refined copper rod production was 750.79 million tons, an increase of 5.25% month on month and 6.83% year on year; In June 2022, the utilization rate of refined copper rod production capacity was 67.45%, with a month on month increase of 5.44% and a year-on-year increase of 2.41%; The overall production level of the market is picking up steadily, the impact of the early epidemic is basically digested, and the production and sales performance of refined copper rod market is picking up steadily.

At present, market sentiment is still fragile, and copper prices may continue to have high volatility in the future. It still takes time to stabilize. Pay attention to U.S. economic data. In the short term, there is a possibility of technical withdrawal of copper prices. It is expected to enter the low shock stage in the later stage.