[SMM Copper Morning Review] There is a hawk-dove dispute within the Fed copper prices run strong

Published: Jul 11, 2023 13:44
Source: SMM
SMM July 11 news: overnight copper opened at $ 8302.5 / ton, the beginning of the plate lower bottomed out at $ 8285 / ton, and then all the way higher near the end of the plate touched higher than 8387 U.S. dollars / ton, the end of the plate finally closed at 8383 U.S. dollars / ton, the turnover to 12,000, the number of positions to 259,000, or up 0.2%.

SMM July 11 news: overnight copper opened at $ 8302.5 / ton, the beginning of the plate lower bottomed out at $ 8285 / ton, and then all the way higher near the end of the plate touched higher than 8387 U.S. dollars / ton, the end of the plate finally closed at 8383 U.S. dollars / ton, the turnover to 12,000, the number of positions to 259,000, or up 0.2%. Overnight Shanghai copper main 2308 contract opened at 67710 yuan / ton, then bottomed out at 67680 yuan / ton, and then all the way up the plate touched higher than 68090 yuan / ton, the end of the plate sideways finishing finally closed at 68020 yuan / ton, turnover to 25,000 hands, positions to 196,000 hands, or 0.29%. On the macro front, 2024 FOMC Voter and Atlanta Fed President Bostic said he doesn't think interest rates need to rise any further and the Fed can remain patient.

While San Francisco Fed President Daley believes that the Fed may need to raise rates a few more times to bring inflation back to target levels, there is a dispute within the Fed about rate hikes, and the market waits for U.S. inflation data that could affect the Fed's policy stance. Fundamentally, as of July 10 this Monday, SMM national mainstream areas of copper stocks increased by 0.53 million tons to 125,600 tons compared with last Friday, 0.64 million tons higher than the same period last year 119,200 tons.

Specifically, Shanghai inventory due to imported copper is still flowing and increase, but downstream demand due to the high price of copper superimposed on the high monthly difference and the performance of the weaker; Guangdong region inventory for seven consecutive days of decline in arrivals to reduce the magnitude of less than the magnitude of the amount of less than the amount of out of stock. On the consumption side, with a large monthly difference and poor performance of downstream orders, demand is expected to continue to decline. Price, the market waiting for U.S. inflation data, copper prices are expected to maintain a strong oscillation in the short term.

More popular news:

SMM Daily Comments (Jul 3): SHFE Base Metals Rose across the Board with Tin Surging, Ferrous Metals Prices Closed Mixed

SMM Daily Comments (Jul 5): Base and Ferrous Metals Prices Mostly Fell, WTI Soared despite Lingering Concerns over Global Economic Downturn

SMM Daily Comments (Jul 6): SHFE, LME Base Metals Diverged with SHFE Nickel and Tin Skyrocketing, Ferrous Metals Rose across the Board

China Commodity Supply and Demand Boomed in June

China Vows To Increase Macro-Control Efforts, Expand Consumption And Stabilise Investment

Citi Research Cautious about Copper Prices in Three Quarters, Iron Ore Prices to Have Support from Policy Stimulus

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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