April 22 Shanghai copper brief commentary

The recent geopolitical turmoil overseas, the outbreak of the second epidemic in Chile has affected the production of large copper mines, and market supply concerns have driven prices high
.
However, the fundamentals of the cycle are not good, and it is difficult to bring supply and demand momentum
in the short term.
In the short term, Shanghai copper may maintain a high volatility trend, maintain a strong outlook in the medium term, and focus on the range of 6.
85-69,500.

Driven by a slight pullback in macro expectations and the start of a pullback cycle, the non-ferrous metals sector halted its previous rally
.
At present, Shanghai copper prices have walked out of the 6-week volatility range, breaking through the range resistance level of 67,800 yuan per ton, and may be able to form a new resistance level
in the next two weeks.
From the perspective of supply and demand, Chile's short-term closure due to the epidemic will not have much impact on the supply side of copper mines, and the demand side will remain stable, so the rise in copper prices mainly depends on macro expectations
.