CICC Wealth Futures: Shanghai Copper will remain under short-term pressure, but the downside is limited

Ask AI · How does the Middle East conflict influence copper price trends through energy prices?

According to China International Capital Corporation (CICC) Futures, the prolonged Middle East conflict and the resulting rise in energy prices and inflation expectations are unfavorable for non-ferrous metal prices, leading copper prices into a correction phase. The shortage at the mine end has not shown substantial recovery, with production maintaining high growth, and new smelting plants increasing output. After copper prices decline, downstream buyers are eager to purchase on dips, with the electrolytic copper rod operating rate rising to 72.9%-81.51% by mid-March, approaching or exceeding last year’s levels. Overall, macro concerns about stagflation and the uncertainty of Federal Reserve policies have not yet been fully resolved, so Shanghai copper is likely to remain under short-term pressure, but the downside space is limited.