February 22 Shanghai copper brief commentary

Spot situation, only two trading days in China last week, the average price of 1# electrolytic copper ran at 62,685 yuan / ton to 63,240 yuan / ton, and the average premium price of flat water copper last week was between 25 yuan / ton and 55 yuan / ton
.
In the spot market, traders are mainly wait-and-see, downstream demand has not improved, and transactions are quiet, but some enterprises have prepared goods before the Spring Festival, and there is no complete holiday during the Spring Festival, and some downstream enterprises have good orders
.
Inventories on major global exchanges are generally low, and expectations of improved demand remain unchanged
.

Last week, as the Chinese market ushered in its first trading day after the Spring Festival holiday, copper prices soared
.
On the one hand
, there is a general optimism about China's consumption.
And superimposed on the current United States, the Biden administration's 1.
9 trillion fiscal stimulus policy landing currently seems to be more promising, which to a large extent continues to boost market inflation expectations, and the previous rebound of the dollar index has failed to continue, and in the case of the Fed's current loose monetary policy orientation does not change, the dollar is estimated to be difficult to form a strong and sustained rebound pattern, so this also creates more favorable conditions
for copper prices to rise.
Therefore, the current outlook for copper prices remains more optimistic, but because the recent price increase is too sharp, it is not recommended to chase higher
too aggressively.