Copper prices fluctuate at a high level, and the upward space in the future market is limited

Copper Market Summary: The epidemic in South America aggravated the disturbance at the mine end, and the next week London copper closed up $6 to a five-month high, domestic inventories still maintained a dematerialization trend, and the final consumer market such as automobiles has recovered, and copper is rising
today.

The epidemic in South America has aggravated the disturbance at the mine end, Chilean mine restrictions still have the possibility of escalating, it is estimated that production will decline by 200,000 tons, the next week London copper shock is strong, to a five-month high, the latest closing quotation of 5943 US dollars / ton, up 6 US dollars, or 0.
10%.

On the evening of June 24 (Thursday), there was no continuous trading and no night trading data
.

As of June 24, the copper inventory in the previous period fell to a low level in nearly one and a half years, the domestic inventory still maintained a degrading trend, and the total inventory of the three major exchanges was at a low level; The automotive and other end consumer markets have recovered, passenger car consumption is expected to continue to grow month-on-month in June, and copper pipe operating rate increased month-on-month due to strong consumption of home appliances, and spot copper prices are expected to rise
today.

Copper prices have risen strongly since the end of March, in addition to being supported by the phased mismatch between supply and demand at home and abroad caused by the epidemic, the loose monetary and fiscal policies implemented by global central banks and governments have also helped copper prices break through multiple resistance levels
one after another.
The Fed expects to extend current interest rates until the end of 2022 and says it will use all tools to support the economy back on track
.

Overall, the abundant global liquidity situation will continue, supporting copper prices
.
But in the post-pandemic period, stimulus measures will not lead to a rapid recovery, and the IMF expects the global economy to recover
only partially by 2021.
The global epidemic situation is still grim, and epidemic prevention will enter
normalization.
From a market perspective, copper prices underwent a V-shaped reversal, showing that market sentiment shifted from extreme panic to emotional recovery
.
The follow-up market will rationally assess the recovery progress
of the global economy in the post-epidemic period.

In summary, abundant liquidity and low inventories support copper prices, but the upside of the future market is limited
.
From the marginal point of view, the supply of raw materials will gradually keep up, downstream consumption will enter the off-season, inventories are expected to usher in an inflection point, copper prices continue to rise after entering a strong resistance zone, copper prices will weaken again after high oscillations
.