Metal in the internal market closed down and the decline in Shanghai copper narrowed

On the macro front, after the hawkish comments of Fed Chairman Jerome Powell, other Fed officials continue to say that a 50 basis point rate hike is certain to occur
.
At the same time, he again urged the Fed to start shrinking its balance sheet
.
Money markets on Tuesday expected a cumulative Fed rate hike of about 190 basis points by the end of 2022, with a 70% chance of a 50 basis point
hike in May.
However, this situation has also greatly reduced the market's confidence in the soft landing of the US economy, and the risk of inversion of long-term and short-end US Treasury yields has increased
.

On the supply side, copper concentrate TC continues to rise, the impact of domestic smelter maintenance and production reduction continues to ferment, and the interference on the demand side may promote TC to continue to rise in the short term
.
In terms of imports, the import window opened slightly during the week and then closed again, and imports are still loss-making
.
On the demand side, the operating rate of fine copper rod last week was 63.
36%, down 2.
9%
from the previous month.
The impact of the domestic epidemic on the consumer side is obvious
.

In terms of stocks, LME stocks were at 80,100 mt, down 00,100 mt from the previous session, and SHFE was down 01,200 mt to 55,300 mt
.

Overall, the Fed's interest rate hike has landed, the current negotiations between Russia and Ukraine have not yet been finalized, and the domestic epidemic has impacted both supply and demand, and multiple factors have added uncertainty
to the current copper price.
Last Friday night, the LME recommended banning Russian copper from warehouses, and the short-term copper price volatility may increase
.
However, in the context of stable domestic growth, if the epidemic is effectively controlled, the recovery of consumption will play a role in promoting the rise in copper prices, and it is recommended to treat
it with caution.