Price trend

As shown in the figure above, copper prices fell slightly this week. As of the end of this week, the spot copper price was 70,045 RMB/ton, down 2.95% from the price of 72,173.33 RMB/ton at the beginning of the week and up 1.33% year-on-year.

According to the monitoring data of SunSirs, in the past three months, copper prices have risen for 6 weeks and fell for 6 weeks. Recently, copper prices have been running to be weak.

Analysis review

The U.S. Federal Reserve raised interest rates by 75 basis points in a historic move to fight inflation this week, with the economy expected to slow in coming months, unemployment to rise and it expects steady rate hikes over the remainder of 2022.

Fundamentally, due to the tight supply of raw materials, copper factories were forced to increase prices to purchase scrap copper. Judging from the pace of resumption of work and production, downstream demand has not given better feedback, and the downstream construction of copper parts was still lower than the level of the same period last year, indicating that market confidence was still insufficient. Copper inventories also recovered.

Market outlook

In the case of weak macro economy and demand, it is expected that the short-term copper price will remain volatile and weak.

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