Shanghai copper volatility strengthened, market risk aversion further heated up

On the macro front, yesterday, according to Kim Shixun, Federal Reserve Chairman Powell attended the semi-annual hearing
of the Senate Banking Committee.
Powell reconfirmed that the Fed is on track to begin a series of rate hikes this month to curb the worst inflation
in decades.
But people have begun to worry about rising inflationary pressures, which increases the risk
that could affect inflation expectations.
The current continued strength in oil prices will undoubtedly exacerbate such concerns
.

From a fundamental point of view, the change is relatively limited, in terms of Shanghai copper, TC prices continued to recover slightly last week, while downstream production resumed slowly, coupled with the continuous fermentation of the epidemic in Suzhou, Nantong and other places has also dragged down consumption to a certain extent, consumption is less than expected, Shanghai copper discount continues to maintain a low position
.
It shows that the holders try to actively ship, and the copper premium in South China shows a continuous downward trend
.

In terms of stocks, the LME edged out 0.
07 million tonnes to 71,400 tonnes, and SHFE accumulated 02,100 tonnes to 75,400 tonnes
.
Overall, the market risk aversion has further heated up, and poor consumption has dragged down the performance of copper prices, but inflation factors may have a more obvious boost
to copper prices.