Macro bearishness continues to shroud the center of gravity of Shanghai copper continues to shift

Overnight, U.
S.
economic data was firm, opening up room
for aggressive rate hikes by the Federal Reserve.
Weak European data has raised fears that the economy may fall into recession, and metal demand concerns have increased
.
Fears of central bank interest rate hikes and a global recession persisted, investors threw into the arms of the dollar for safe-haven, the dollar approached 110 intraday, and risk assets came under collective pressure
.

Recently, LME copper inventories and Shanghai copper warehouse receipt inventories have shown a dematerialization situation, but the market's focus has shifted to worrying that metal demand may be impacted by the domestic epidemic, and supply and demand are very limited in the face of copper price support
.
In addition to the previous concerns about the tightening of overseas macro policies, the market's concerns about the repeated domestic epidemic have led to a weaker-than-expected economic recovery
.
If the epidemic continues to ferment, consumption may be greatly impacted, and the tight spot that previously supported the important logic of prices may be falsified
.
At the current node, the uncertainty of the epidemic is very high, the rebound may end early, and the judgment of wide price fluctuations is maintained in the near future
.

In terms of the market, Shanghai Metal Network 1# electrolytic copper quotation 60300-60700 yuan / ton, the average price of 60500 yuan / ton, down 1275 yuan / ton from the previous trading day, the 2209 contract reported up 340 liters -420 yuan / ton
.
Today's spot market trading is acceptable, and the premium is up 40 yuan / ton
from yesterday.
The decline in copper prices widened, and downstream consumption improved
.
Intraday spot premium is on the rise, the mainstream of flat water copper rose about 340 yuan in one period, and gradually increased from the second period, rising 370-liter 400 are all traded, good copper transaction price is higher than flat water copper 20 yuan level, wet copper and poor copper are still rare
.

Overall, the bearish atmosphere continues to pressure copper prices, copper prices continue to decline sharply lower, coupled with the spread of the domestic epidemic to aggravate market concerns, and copper fundamental changes are limited, spot transactions are not very bright and difficult to resist the weakening of the macro atmosphere, so copper prices are still weak running, copper is expected to fall
.