Increased supply concerns drove the copper market up

On the macro front, Fed Chairman Jerome Powell reiterated the Fed's willingness to curb high inflation, saying at a Senate hearing that the Fed will raise interest rates more times if there is a need to reduce inflation, believing that the US economy can withstand the Fed's tightening of money and the growth of new crown cases caused by the Omicron virus
.
U.
S.
Treasury yields turned lower after Powell's hearing, and the dollar index briefly fell to its lowest point in January
.
Among commodities, international crude oil, which has fallen for several days, rebounded strongly, and U.
S.
oil once rose more than 4%.

The U.
S.
Department of Energy's EIA monthly report expects U.
S.
oil production to hit a yearly high next year, but raised the expected price
of U.
S.
oil this year.

From a fundamental point of view, although the intraday market picked up, it fell slightly from yesterday, stimulating downstream factories to replenish and buy goods, boosting the activity of the copper spot market, and the market supply is not much, traders dominate the market under the strong price sentiment, Shanghai copper premium rise; Guangdong electrolytic copper inventory ended two consecutive increases slightly declined, because inventory and copper prices have declined, some holders insist on price shipments, but the downstream acceptance is low, and early holiday consumption is not good, holders can only reduce the price of shipments, after the price reduction transaction has improved, South China copper premium rise
.

In terms of inventory, both the LME and SHFE were destocked
.
On January 11, the LME destocked 0.
07 tons to 84,000 tons, SHFE destocked 0.
09 million tons to 05,300 tons, and on January 10, domestic social stocks (including bonded areas) rose 02,700 tons from last week to 289,900 tons
.

Overall, Powell's hearing speech was dovish, and the copper price rebounded to the 70,000 mark in overnight, and the market currently believes that the upcoming US CPI for December will be the picture 7 mark, so the current temporary for copper is mainly
based on bargain hunting.