September 20 Copper Market Brief Review

On Thursday, the Shanghai copper opened low and then the shock operation was dominant, and the main 1911 contract of Shanghai copper was subject to 47070 points (-180, -0.
38%)
as of the close of the day.
Overnight, the Fed's interest rate cut landed, and the unoptimistic attitude of the interest rate cut pushed the dollar index up slightly, suppressing copper prices
.
However, it is worth noting that the trend of global central bank interest rate cuts is gradually coming, and other easing policies may land in the later stage
.

The Fed cut interest rates for the second time this year, in line with expectations, but was seen as a "hawkish rate cut"
because Fed officials could not agree on the path of future easing policy, and the dot plot suggested that there would be no further rate cuts this year.
The People's Bank of China renewed the MLF the day before, but kept the operating interest rate unchanged, and the market's expectation of a rate cut was disappointed
.
The landing of the Fed's interest rate cut and the failure of China's central bank's interest rate cut expectations have refocused the market on the current economic growth prospects, but the downward pressure on the economy remains, and China's industrial value added, investment and consumption continued to weaken
in August.
Therefore, it is expected that under the guidance of macro, copper prices will still have downward pressure
.

In terms of fundamentals, copper mine supply is tight, TC continues to dip, and the release of refined copper supply is slow, superimposed on the arrival of the "gold nine silver ten" consumption season, copper enters seasonal destocking, and there is support
in fundamentals.
Therefore, it is strategically recommended to wait for the high level of the Shanghai copper short order before intervening
.