Copper prices rose sharply, and there was fear of heights downstream

On the macro front, the recovery in Europe and the United States continued to improve, the inflation logic was hyped again, the US non-farm payrolls data was lower than expected, and the US dollar continued to weaken; London copper stood at an all-time high, but some investors took profits and closed their positions triggering a major correction
.
It is expected to remain strong in the short term, but the high volatility will increase, pay attention to the risk of
pullback.

The overall logic of trading remains unchanged, macro sentiment is likely to remain optimistic until the next Fed interest rate decision, and ECB Chief Economist Ryan also said that the economy has recovered more slowly than expected and is expected to return to pre-pandemic levels
by the end of 2023.
However, the contradiction between supply and demand is increasingly intensifying, the production pace of downstream processing enterprises has been forced to slow down, shipments have dropped significantly, and some enterprises choose to delay delivery or even pay liquidated damages
.

On the supply side, TC rebounded slightly, but the interference showed signs of increase, refined copper production grew rapidly, and imports also showed a high growth rate
.
On the demand side, the marginal recovery of domestic terminal demand, but the inflection point of domestic copper inventories is not obvious, and there is fear of heights downstream after the sharp rise in copper prices
.
However, overseas inventories continue to decline, domestic exports are growing at a high rate, and overseas factors are more dominant
.