Downstream demand is light, and copper prices have fallen after climbing

On the macro front, the US inflation data in December continued to rise, of which CPI rose 7% year-on-year, PPI increased 9.
7% year-on-year, the highest level since records began in 2010, in the face of increasingly severe inflationary pressure, many Fed officials continued to hawk, Fed Governor Brainard hinted that interest rates will begin to raise in March, liquidity concerns have revived, and the atmosphere of risk assets is empty
.
Brainard, who was previously seen as one of the most dovish Fed officials, said her hearing remarks an important shift
in the position of influential dovish members of the Fed.

In terms of news, customs data showed that China's unwrought copper and copper imports in December were 589,165.
3 tons, up from 510402 tons in November and the highest monthly intake since October 2020, which analysts said was mainly because a good price arbitrage window made imported copper more attractive
.

In terms of the market, Shanghai Metal Network 1# electrolytic copper quotation 71400-71740 yuan / ton, the average price of 71570 yuan / ton, down 560 yuan / ton
from the previous trading day.
The spot market traded generally, and the 01 liter of water fell by 210 yuan tons
from the previous day.
At the beginning of the session, some holders quoted 01, because the basis of the contract of the current month to the next month expanded, the market dumped a large number of goods resulting in a surge of premium and difficult to trade, most of the holders in the session turned to the 02 contract report, the transaction is relatively good, the mainstream transaction of flat water copper is about 330 yuan level, and the price is stable, the mainstream of good copper is about 350 yuan level, domestic good copper is about 400 yuan, poor copper and wet method are still rare
.

In terms of inventory, LME copper stocks are still in a state of dematerialization recently, but the speed of pass-through has slowed down significantly, and the recent change in registered warehouse receipts has not changed much, and the proportion of cancellations has rebounded
slightly.
For domestic inventory changes, exchange inventories continue to fluctuate at a low level, and inventories in the Shanghai Free Trade Zone show slight signs of rebound, but the window is closed, and copper outside the customs has not yet been driven
by large-scale imports.

At present, the impact on copper prices is still mainly affected by the surrounding market and news, after this round of price rise, low inventory price support is acceptable, intraday pullback shock mainly, pay attention to the 7.
08-71,000 first-line support effect, if the US index does not have a large rebound copper prices can still maintain a high level
.
In terms of operation, the merchant waits and sees to ship a small amount of goods, and the downstream waits and sees, and there is a need to take it
appropriately years ago.