Copper Market Morning Comment (July 19)

Published: Jul 19, 2023 09:54

Source: SMM

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In terms of macroeconomics, US retail sales for June recorded a growth rate of 0.2%, marking the third consecutive month of growth. However, it fell below the expected growth rate of 0.5%.

In terms of macroeconomics, US retail sales for June recorded a growth rate of 0.2%, marking the third consecutive month of growth. However, it fell below the expected growth rate of 0.5%. The market expects the Federal Reserve to raise interest rates by 25 basis points next week, but the rate decision is still pending. In terms of fundamentals, after the contract rollover, the center of gravity for copper prices has shifted slightly downward. Some downstream companies in East China have shown an increased willingness to replenish stocks. However, high inventories have made it difficult for holders to have confidence in supporting prices. Overall, the trading volume has slightly improved compared to last week. In the southern region, inventories have increased slightly, but the purchasing enthusiasm of downstream buyers has not improved due to the decline in copper prices. The spot market trading is not active, and the premium has been continuously declining.

In terms of consumption, downstream demand has only slightly improved after the contract rollover, and the market still finds it difficult to accept the current high copper prices. In terms of prices, the market is awaiting the interest rate decision, and copper prices are expected to remain in a high range of fluctuations in the near future.

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