Fed's rate hike boots landed, and copper prices climbed

On the macro front, the Federal Open Market Committee (FOMC) raised its benchmark federal interest rate by 25 basis points from the 0%-0.
25% range to the 0.
25%-0.
50% range, the bank's first rate hike since December 2018, and hinted at six more rate hikes of the same magnitude this year
.
At the same time, the Fed sharply lowered its GDP growth forecast for this year, from 4% to 2.
8%
previously.
This reflects the Fed's concerns
about geopolitical factors in Russia and Ukraine and about persistently high inflation.
Copper prices also rebounded
after the Fed's rate hike boots landed.

Fundamentally, change is relatively limited
.
Copper concentrate TC continues to rise, mainly affected by the maintenance and production reduction of domestic smelters, and TC may further rise
in the short term.
In terms of refined copper, domestic electrolytic copper production in February 2022 was 887,400 tons, an increase of 7.
4% year-on-year and 1.
7% month-on-month, basically in line with expectations
.
On the demand side, the operating rate of fine copper rod was 66.
26% last week, up 4.
3%
month-on-month.
Electrolytic copper rod consumption continued to improve, enterprise finished product inventories declined, gold three silver four, is expected to continue to recover this week
.

In terms of stocks, LME stocks were at 77,400 tons, down 001000 tons from the previous session, and SHFE accumulated 0070000 tons to 63,900 tons
.

Overall, the market's concerns about inflation still exist at present, which is still more favorable for copper prices, and it is currently close to the domestic consumption season, it is recommended that the operation of copper varieties is still mainly based on bargain hunting
.