Market confidence has increased sharply, and copper prices may remain high and volatile in the short term

On the macro front, the Fed raised interest rates by 25 basis points as scheduled, and gave a signal that the balance sheet may be reduced in May, the Fed's rush to rush to the top of the posture is highlighted, in addition, the conflict between Russia and Ukraine also shows a signal of easération, superimposed on the end of China's two sessions and the Winter Olympics, the market heavy risks have all landed for the time being
.
Domestically, the Financial Commission of the State Council held a meeting, which pointed out that it is necessary to effectively revive the economy in the first quarter, monetary policy should take the initiative to respond, and new loans should maintain moderate growth
.

In terms of fundamentals, there has not been much change for the time being, and the refined waste price spread is still stable at around
4500 yuan per ton.
In the future, copper prices will remain under pressure in the short term, and the overall demand for copper in the first half of 2022 is expected to be weak, the power grid may remain stable, and white goods may continue to come under pressure
.

In terms of inventory, the global inventory changes in the three places, the LME and COMEX are in the process of destocking, and after China's seasonal accumulation, it has entered the real supply and demand window, paying close attention to whether there is a possibility of inventory decline, and the overall low inventory continues to support the trend
of copper prices.

At present, the relationship between Russia and Ukraine has further eased, the Fed's interest rate hike is moderate, and the domestic epidemic will gradually recover with the increase of control efforts, and the negative factors are weak; A recovery in domestic demand and persistently high inflation are expected to continue to support copper prices to remain elevated
.
Short-term copper prices are expected to remain volatile
at high levels.