Russia-Ukraine tensions ease, copper prices may maintain strong volatility

Yesterday evening, the Russian attack day "predicted" by the United States and Ukraine was falsified, and the minutes of the Fed meeting did not release more hawkish clues, the tension in global financial markets eased, and European and American stock markets and bulk markets temporarily rested and waited after
experiencing ups and downs.
As of the close, LME copper futures first rose and then fell to close at 9955 US dollars / ton, down 0.
19%, domestic nonferrous futures rose overall overnight, and the main contract of Shanghai copper futures closed at 71560 yuan / ton, up 0.
28%.

On the macro front, the minutes of the Fed interest rate meeting showed that participants expected to start raising interest rates soon, but did not disclose clues that a 50 basis point rate hike may be raised at a time, and the minutes released a signal that a rate hike may be in March, but did not hint whether it will raise interest rates significantly in March, overall, the minutes are not as hawkish
as the previous market expected.

From a fundamental point of view, in terms of Shanghai copper, yesterday's contract was exchanged for months, and the overall trading activity of the market was limited
.
However, with the gradual resumption of work and production of downstream consumption, coupled with the continuous decline of the plate, while domestic inventories are still in a historically low position, and it is difficult to see the opportunity for import price comparison under the strong and weak inside the market, Shanghai copper rises to the water; In terms of South China copper, Guangdong inventories ended a 6-year increase, and this week began to resume downstream production to increase consumption to reduce inventories, trade atmosphere improved, South China copper premium higher
.

In terms of stocks, on February 16, the LME rose 04,900 mt to 75,300 mt, while SHFE stocks also rose 04,900 mt to 71,100 mt
.
In terms of imports, the import window continued to close, LME0-3 maintained its Back structure, and market trading continued to maintain low activity
.
Overall, the tension between Russia and Ukraine has eased, and inflationary pressure in the United States continues to affect the trend
of copper prices.