May 25 Shanghai copper brief commentary

In early trading, Shanghai copper rebounded to touch the previous pressure level of around 73,000, and then affected by the National Development and Reform Commission and domestic strengthening solutions for commodity price changes, market confidence was cold, and prices fell
.
It is worth noting that the current decline in the US index is difficult to promote the continuation of the rebound of copper prices, and international funds have encountered domestic policy competition, and it is recommended to continue to pay attention to the promotion and strength of domestic policies
.
It is expected that the Shanghai copper range is mainly volatile overnight, focusing on high selling and low absorption
around 7.
1-73,000.

From a macro point of view, over the weekend, the National Development and Reform Commission and other five departments jointly interviewed key enterprises with strong market influence in copper, aluminum, iron ore and other industries, requiring upstream and downstream enterprises to coordinate development, maintain the price order of the bulk commodity market, and not hoard, collude with each other to manipulate market prices, and fabricate and disseminate price increase information
.

Overseas, although the Fed proposed in its recent minutes that it will discuss plans to taper bond purchases at some point in the future, quantitative easing will not change in the short term, so copper prices may continue to be strong near support levels
.

From the perspective of supply and demand, the slightly tight supply of copper mines has provided some support for copper prices, and the sharp correction in prices has been accepted by some downstream enterprises, and wire and cable companies may restore productivity
at the end of May and early June.
Strategically, it is recommended to go long
around 70,000 yuan.