Copper prices rose sharply, boosted by factors such as the risk of strikes in Chile

Non-ferrous metals continued to rebound in the morning, with the decline in LME and previous zinc inventories supporting a sharp rise in zinc prices
.
Shanghai copper was boosted by factors such as the risk of strikes in Chile
.
By midday close, Shanghai copper was up 1.
69% and international copper was up 1.
62%.

On the macro front, the US core CPI rose 3% year-on-year in April, better than the market expectation of 2.
3%, reflecting that the rise in upstream commodity prices has begun to gradually transmit downstream, and the transmission force and speed are greater than expected
.
This has led some bearish investors to worry again that inflation will affect the Fed's monetary policy
.

Supply and demand, in the context of the sharp rise in copper prices, wire and cable company orders have fallen off a cliff, only some rigid orders remain on the market, and downstream enterprises are miserable
.
Some small and medium-sized enterprises have been forced to stop work
due to shortcomings such as small production capacity, weak brand, and insufficient capital turnover.

In terms of fundamentals, the CSPT team failed to finalize the floor price of copper concentrate processing fees in the second quarter of 2021, indicating that the market may have certain differences in the future supply of copper concentrate, but it is still difficult to say that it is generous, and on the demand side, China's current control of the new crown epidemic is still very successful, and the new energy and new infrastructure sector will continue to pull copper demand, and the next peak season destocking is likely to form a strong support for copper prices, temporarily maintaining the long-term bullish judgment of copper prices, but if the destocking in the second quarter is not as expected, The rise in copper prices may be weaker
than previously expected.