Easing market panic provided rebound support for copper prices

Last week, copper prices at home and abroad have rebounded to a certain extent, after London copper fell back to the low level of more than a year, market support began to strengthen significantly, copper prices also slowed down, prices have recovered, but has not changed the previous downward trend
.

On the macro front, the dollar retreated significantly last week, which is the largest weekly retreat in the dollar index in nearly a quarter, considering the acceleration of the dollar's previous rise, so this pullback may not be short-term, the market has also begun to pay attention to the poor US economic data, there is a possibility of recession, interest rate hike expectations have also slowed down, copper prices have also benefited
.

In terms of supply and demand, the domestic epidemic continues to improve, logistics is further smooth, Shanghai will also fully resume work and production in June, the domestic 5-year LPR has been lowered, demand is expected to show marginal improvement, and the market's optimistic expectations have heated up
again.

On the supply side, the domestic minimum output at the end of May will usher in, considering that the commissioning of Shandong refinery and Daye Nonferrous Metal is still difficult to reach full production in the short term, and the import quantity has fallen, so the overall supply side of the tight problem will continue
in the next 1-2 months.
From the perspective of comprehensive supply and demand, in the next 1-2 months, the supply and demand of the market will further tighten, market inventories are expected to continue to fall, and copper prices will also be supported
from this angle.

Overall, the rapid decline in copper prices has come to an end, and after the panic eases, confidence is expected to recover, and whether it is macro, supply and demand or technology have provided rebound support, so it is difficult for copper prices to continue to fall
.