July 19 copper market morning review

From a macro perspective, the US CPI recorded 9.
1% in June, exceeding the pre-renewal to a record high, which accelerated the path of interest rate hikes in the macro trading logic, and the 75 and 100BP games were played before the July interest rate meeting; While high inflation is difficult to solve, the vicious cycle of accelerating monetary tightening to increase recession expectations, copper prices have fallen sharply From the point of view of supply and demand, the possibility of domestic inventories continuing to dematerialize sharply is decreasing, but the accumulation expectation is rising; Overseas, LME copper European inventories showed signs of delivery, the proportion of warehouse receipts cancelled fell to a safe level, and the low inventory pattern weakened
price support.

Under the guidance of macro logic, copper prices once again fell to a new low, but the mood eased copper prices quickly recovered 55,000 yuan / ton, copper prices to stop the decline now need macro recession expectations trading sentiment eased, on the other hand, domestic demand expectations have improved, it is expected that there is still room
for repair above short-term prices.