Copper prices continued their weakness overnight, with the main contract falling nearly 1% to close at 80,810 yuan. LME copper dropped to $9,840, and US copper fell to $5.12, maintaining a premium of about 15% over LME copper. The US imposes a 25% tariff on imported cars and parts, and several countries are considering countermeasures, which has led to pessimistic demand prospects and increased risk-averse sentiment in the market.
The Federal Reserve continues to send hawkish signals, indicating that high-interest rates will be maintained for an extended period, further heightening market uncertainty. Fundamentally, although SHFE copper warehouse stocks decreased by 1,662 tons to 138,000 tons, and LME copper decreased by 1,475 tons to 215,000 tons, overall market sentiment remains bearish.
Currently, the uncertainty in global trade policies and the high-interest rate environment are expected to continue to pressure copper prices. The market is focused on the stability of the 80,000 yuan support level, with the operating range of the SHFE main copper contract referenced at 80,000-81,200 yuan/ton. As for trading strategies, it is recommended that investors holding long positions reduce positions at high levels, while those not yet in the market may choose to remain on the sidelines.
