Macro side, Trump denied rumors about firing Fed Chairman Powell, while again fiercely criticizing Powell for failing to cut interest rates. The US dollar index plunged during the trading session and eventually closed lower, exerting bearish pressure on copper prices. Additionally, Trump indicated that he would send tariff letters to over 150 countries, with the tariff rate possibly set uniformly at 10% or 15%, further advancing his trade agenda. The uncertainty surrounding tariffs remains.
Fundamentals side, there is a shortage of mainstream supply of standard-quality copper, while high-quality copper has seen some supply replenishment. SX-EW copper remains in tight supply, and warrants failed to flow out in large quantities during the delivery period, indicating an overall tight supply situation.
Demand side, suppliers continued to quote high premiums during the day. However, SHFE copper prices fell in the morning session, continued to decline during the morning trading hours before rebounding, with market sentiment affected by price fluctuations.
Price side, with bearish factors from the current macro and fundamental situation causing disturbances, it is expected that copper prices will face upward pressure today.