After the price fell deeply, copper prices may have short-term adjustment needs

On the macro front, the minutes of the meeting between Europe and the United States will be released this week, and the remarks are expected to be hawkish, and the news says that the US government is expected to ease tariffs
on China.
European gas prices rose to their highest level in nearly four months, with gas markets being significantly affected by Russian supply cuts and Norway's industry strike plans threatening further tightening
.
European benchmark natural gas futures rose as much as 10 percent and have more than
doubled this year.
In the case of persistently higher energy prices, inflation may be less likely to be brought under control immediately
.

Domestically, great progress has been made in epidemic prevention again, market sentiment has shown certain signs of improvement, the current stable growth is still the top priority at present, and policy expectations are strong
.

In terms of consumption, due to the relatively sharp price decline before, downstream enterprises are afraid of falling and refusing to take it
.
According to Mysteel News, the market is still pessimistic about the future copper price and macro picture, coupled with the consumption off-season, the operating rate of downstream enterprises is not as good as the normal level
in previous years.
At the end of the half year, traders' willingness to receive goods also fell to the bottom, until Friday entered July, the transaction picked up, mainly for traders to flow goods, downstream consumption still has not improved
.
It is expected that this situation will not change significantly this week, but after entering the new month, as various domestic support policies are gradually introduced and landed, demand expectations may gradually improve in the middle and late months
.

On the whole, the rapid decline in copper prices has caused certain pressure on market procurement, and the basic support for copper prices is weak, but it is also a normal phenomenon
.
The expectation of a slowdown in global economic growth and the expectation of tightening liquidity, without a stronger impetus from fundamentals, is difficult to become an effective supporting factor, but the improvement in demand in the third quarter compared with the second quarter has become a consensus, and there is also a short-term technical adjustment demand
after the deep price decline.