On the previous trading day, London copper opened at 9781.5 US dollars per ton, with a peak of 9,851.5 US dollars per ton and closing at 9,772.5 US dollars per ton; Compared to the previous trading day, it fell by 14.5 US dollars/ton, a decrease of 0.15%. The main copper contract in Shanghai closed at 79,290 RMB/ton, down 390 RMB/ton, a decrease of 0.49%.
From a macro perspective, the May inflation data in the United States had fallen, coupled with a higher than expected performance in the non-farm employment market, causing a delay in the expected timing of interest rate hikes. In addition, the Federal Reserve's grid chart currently showed that interest rates may only be raised once within the year, and the Federal Reserve's interest rate policy was putting pressure on copper prices. At present, indicators such as the US economy and employment do not appear weak, at least with no obvious signs of recession. From recent meeting minutes, it can be seen that the Federal Reserve is determined to achieve inflation reduction, and the current economic state may still be able to withstand the impact of high interest rates. At present, at the level of monetary policy, the expectation of interest rate cuts may provide a margin for copper prices, but the short-term positive energy is declining.
In terms of supply and demand, the domestic electrolytic copper production in May was nearly one million tons. Although it is expected that the production will decrease in June under a high base, the overall level may remain relatively high.
Overall, at the monetary level, the rise in copper prices has weakened, while mining shortages actually exist but speculation has weakened. High production continues, and attention will be paid to the impact of rising demand on inventory after the decline in copper prices.
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