Recently, the central bank announced an over-continuation of the MLF (Medium-Term lending Facility) initiative, which has caused widespread concern in the market. The implementation of the excess continuation MLF has enhanced the market's confidence in the economy, and also indicates that the future LPR (loan market quotation rate) is still likely to be lowered. This positive news is a positive factor for the copper market.
From the perspective of supply and demand, the supply of copper market is still strong, but the price decline has stimulated the motivation of downstream enterprises to replenish inventories. This has led to the current low level of Shanghai copper social inventory, which has played a certain limiting role in the decline of copper prices.
In addition, China's new energy vehicles are outstanding in lightweight development, and the purchasing power of the terminal consumption field continues to increase, which promotes the demand for copper. With the continuous expansion of the new energy vehicle market, the demand for copper is also gradually increasing. This will further support copper prices and have a positive impact on the market's performance.
Taking the above factors into consideration, in the short term, copper prices are supported by multiple positive factors, especially the strong performance of new energy vehicles provides certain support for copper prices. Copper prices are expected to rise today. However, investors still need to pay close attention to changes in the market in order to make more informed investment decisions.
