Long - Short Game Intensified Shanghai Copper Futures To Return To The Oscillation Interval

Recently, with the Federal Reserve in March to increase interest rates expected to strengthen, short game intensified, copper prices back up to return to the oscillating range. Shanghai copper futures fell sharply on Friday night, with the main contract CU2203 closing at 70,890 yuan/ton, down 2.23% by the domestic close.

On the macro side, New Era Futures said that from the overseas data released within the week, THE US CPI rose 7.5% in January from a year ago, continuing to hit the highest since February 1982, but also significantly exceeded the market's previous expectations of 7.2%-7.3%. The dollar index regained 96 highs on the back of the high inflation data, which strengthened expectations for the fed to start raising interest rates by 50bp in March. As a result of the dollar index and copper price negative correlation, copper pressure back early excessive gains.

In terms of fundamentals, Donghai Futures pointed out that the global extremely low inventory support is still strong, LME continued to destock during the holiday, has now dropped to below 80,000 tons, domestic inventory slightly more than the same period in previous years, the later focus on consumption recovery. However, the current spot is still maintained premium, copper price callback or stimulate a certain amount of replenishment demand, demand expectations for prices are still supported.

Looking afternoon, guosen futures believes that the current short-term copper prices experienced a roller coaster, failed to break above resistance after stand firm will shock consolidation below support, we have always stressed the winter spring rally nonferrous will have more power, the proposed speculative customers to shock train of thought is given priority to, the more the processing enterprises to lock in profits hedging is given priority to, more focus on price and price comparison, Trend investors grasp the post-holiday market structural rebound opportunities, pay attention to capital management and risk control.