The macro environment is still biased Copper prices show a range-bound trend

The U.
S.
decision not to impose trade tariffs on Mexico has boosted investor risk sentiment
.
An unexpected increase in initial jobless claims in the United States, rising to a five-week high, adding signs of a possible cooling labor market, and the U.
S.
import price index for May indicating subdued inflationary pressures in the United States, reinforced market expectations
for a Fed rate cut.
However, the Sino-US trade dispute shows no signs of easing in the short term, and the trade conflict and tariff increase hurt global economic growth, will hurt industrial metal demand, and limit the rebound
in copper prices.

On the supply side, Chile's national copper company Codelco, the world's largest copper producer, and its Chuquicamata copper miners' union broke down in negotiations and will start a strike
on Friday.
Copper inventories in China's bonded warehouses and previous stores are decreasing, and are expected to decline
further as restrictions on scrap imports are strictly enforced.
Morgan Stanley expects mine copper supply growth to remain slower than demand growth until the middle of next year
.
Mine disruptions such as strikes at Chilean copper mines and declining mine tastes are increasing, and expectations of tight copper concentrate supply are gradually being realized
.

On the demand side, China's passenger car sales in May fell by 17.
4% year-on-year, the largest monthly decline in history, while new energy vehicle sales increased by 1.
8% year-on-year, slowing down significantly, weak industrial and manufacturing activities are also hitting demand, short-term terminal consumption weakness is difficult to change, domestic demand pressure still exists
.
However, the agency said there were signs that China's copper demand would pick up; Although China's new stimulus measures have limited direct effect on copper consumption, they have also made investors hope that increased investment in infrastructure construction will lead to a recovery in copper demand, and market sentiment has picked up
.

In the week of June 14, domestic spot copper prices rebounded
this week.
The average price of copper in Yangtze River nonferrous metal network 1# was 46534 yuan / ton, up 78 yuan / ton per day, and up 0.
85% on the weekly line; The average price of the previous week was 46305 yuan / ton, up 229 yuan / ton compared with last week, up 0.
49%
from the previous week.

Copper market news

Santiago, June 13 -- Workers at the Chuquicamata Copper Miners' Association, a subsidiary of Chile's national copper company Codelco, the world's largest copper producer, said late Wednesday that they would start a strike on Friday after failing to reach a labor agreement
with Codelco.
Codelco is trying to transform Chuquicamata's century-old resource into an underground mine
.

2.
QUITO, June 12 -- Ecuador's government said on Wednesday that preliminary studies suggest Cascabelbf in the northern part of the country could become a world-class copper, silver and gold mine.

The project is operated by Australian miner SolGold and is currently in the exploration period
.

Looking ahead, China has recently released some stimulus measures, the automotive industry and infrastructure are expected to benefit, although the demand outlook has been boosted, but it may be difficult to boost downstream copper consumption in the short term, and copper demand will enter the off-season
.
Tensions between Zambia and mining companies have further escalated, and the Zambian president has threatened mining companies with fines for non-compliance, further consolidating the tight upstream supply situation, which will provide some support to copper prices and perform more resiliently
.
Short-term market sentiment will affect copper prices, which are expected to fluctuate next
week.