Copper price support is strong, and it will still fluctuate at a high level in the short term

On the macro front, stocks tumbled on Wednesday, but the lack of downward momentum in the copper market increased pressure on short profits to close positions
.
Considering that this Thursday is the European Central Bank meeting, next week's Federal Reserve meeting, and this Saturday's release of Chinese macro data, it is estimated that copper prices still have the possibility
of high volatility before.

In terms of the market, the continuous decline in copper prices has increased downstream purchases that have been waiting for a long time, while the copper discount continues to strengthen and cools the transaction between traders
.
Yesterday's spot copper prices fell sharply, the current copper discount was further narrowed, middlemen took advantage of the dip, downstream inquiry prices were positive, and the overall transaction situation of the market improved
.

On the supply side, last week, Chile announced copper production in January, down about 10% year-on-year; Peru's year-on-year production growth rate in January was only 40%, and the planned production increase rate should be more than 60%, and the short-term slowdown in copper supply and the rebound of surrounding markets are the supporting logic
of copper prices.
However, in the medium term, the current copper price is conducive to the release of supply, so the medium-term copper price is still not optimistic
.

During the day, Shanghai copper below touched the 10-day moving average after rebounding, indicating that copper prices still have strong support in this line, it is expected that copper prices in the short term still have the possibility of shock adjustment, it is recommended to wait and see
.