On a macro level, Federal Reserve officials and members of the vote committee have stated that the United States is currently in a state of full employment, with relatively stable economic growth and moderate inflation, which will be beneficial for the Fed's gradual interest rate cuts. Although there is uncertainty about the impact of the US foreign trade policy on the future, recent trends suggest that although interest rate cuts may slow down, they will still continue. International investment banks expect another interest rate cut in the second quarter.
Domestically, State Grid predicts that the total investment in the power grid this year is expected to reach 650 billion RMB, coupled with the support of the new energy industry for copper consumption, which is expected to support copper prices in the medium to long term. In the short term, the accumulated social inventory of electrolytic copper in China after the holiday has exceeded 150,000 tons. In the short term, attention should be paid to the progress of downstream resumption of work, and it is expected that copper prices will maintain a strong trend in the short term. If inventory continues to decline, copper prices are expected to further rise.
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