SHANGHAI, Jun 27 (SMM) – Driven by the Russian-Ukrainian war, global energy prices continued to rise, which indirectly increased inflationary pressures in Europe and the United States. The US CPI in May rose by 8.6% year-on-year, hitting a new high since December 1981. Inflationary pressures continue to be transmitted to the consumer side, forcing the US Fed to announce a single rate hike of 75 basis points at the June interest rate meeting in order to ease inflationary pressures. The economic growth rate of Europe and the United States has slowed down. In June, the initial value of the Markit manufacturing PMI in the United States was recorded at 52.4, a new 23-month low, and the initial value of the manufacturing PMI in the euro zone was recorded at 52, which was lower than market expectations. China's manufacturing activity also declined, caused by the pandemic, real estate and home appliance sectors. It is expected that China's manufacturing PMI will improve month-on-month, but it is difficult to see strong cyclical changes. Overall, market concerns about the global economic outlook have intensified, and the macro sentiment remains bearish. The spot market transaction was lower than expected. As copper prices fell too fast, the downstream purchasing mentality was more cautious. The overall orders were weak. As the maintenance of smelters was gradually completed and some traders shipped imported copper into the domestic market, the supply is expected to gradually pick up.
In the absence of optimistic factors from the overseas, there is still a lot of room for the overvalued copper prices to fall.
