Copper prices retreated in the first half of 2022 after a sharp rise caused by the Russia-Ukraine incident and fell again on concerns about the Federal Reserve raising interest rates and global economic growth.
The Fed’s rate hike process and the decline in global economic growth expectations under high inflation will lead to a macro tightening.
Disturbances on the supply side in the first half of the year mainly occurred in South America. The decline in copper mine production in Peru is mainly related to social conflicts and government tax increases. Peru’s government is expected to deal with the problem in the second half of the year, and resume copper mine operations as soon as possible to obtain tax revenue.
The fall in the manufacturing PMI and high inflation have led to lower demand, and the level of demand has not been greatly affected for the time being. These effects have a certain hysteresis and may ferment in the second half of the year.
To sum up, in the context of macro tightening, supply has recovered slightly, and demand has continued to be weak, the market generally believes that copper prices may continue to face downward risks.
You must have seen that rumors are making rounds regarding Rose Hanbury's alleged affair with…
In a historic move, the Bank of Japan (BOJ) has increased its key interest rate…
In the Formula 1 World, things are very uncertain and same was the case last…
The Formula One world has been rocked by escalating tensions within the Red Bull Racing…
Jos Verstappen, father of Red Bull Racing's star driver Max Verstappen, has publicly stated that…
In a dramatic turn of events at the Dubai Tennis Championships, Russian tennis star Andrey…