The first is supply shortage - overseas copper mines are experiencing supply shortages, and rumors of production cuts by domestic smelters have also intensified market concerns about copper supply shortages;
The second is economic recovery - the U.S. manufacturing PMI has bottomed out since the middle of last year, and the ISM manufacturing index in March rebounded to above 50, indicating that the U.S. economic recovery may exceed market expectations;
The third is policy expectations - the domestically issued "Implementation Plan for Promoting Equipment Updating in the Industrial Sector" has increased market expectations on the demand side; at the same time, the Federal Reserve's potential interest rate cut expectations have also supported copper prices, because lower interest rates usually stimulate more demand. More economic activities and consumption, thereby increasing demand for industrial metals such as copper.
However, this price rise has also triggered market thinking. The current rise in copper prices has largely overdrawn the supply and demand gap and the expectation of the Federal Reserve cutting interest rates. Is there still a possibility of rising prices in the future?
Post time: Jun-07-2024