Global nonferrous giants announced production cuts
Nyrstar, one of the world's largest zinc smelters, announced that it will further cut zinc production at its three European smelters, cutting production by up to 50% from Wednesday, which will affect global supply by 2.5%. The reason for Nyrstar's production cut is that the price of natural gas and thermal coal in Europe has soared to record highs. After the news came out, zinc supply concerns fermented, and the price of lun zinc strongly led to a collective rise in metal prices, and the price of lun copper broke upwards.
This news does not seem very relevant, in fact, it shows that more and more supply chain companies can only choose to cut production in the face of the high cost of electricity and energy, which aggravates the output of finished products of downstream enterprises, and the final cost is still passed on to consumers. Lun zinc, Lun aluminum and other metals prices fly together, to a certain extent, the business catches up with the high oil prices, or marks the intensification of the global energy crisis.
International copper prices broke to the upside
Since the second half of this year, the trend of international copper prices has narrowed and lost upward momentum, which is mainly caused by the calming of the chilean copper mine strike, the stabilization of copper supply, the slowdown in short-term demand caused by the impact of the epidemic in copper consumer countries such as China and the United States, and the close tightening of monetary policy by the Federal Reserve to support the strong rise of the US dollar. The copper market has a strong wait-and-see mood, and the bulls and bears are relatively balanced. The production cuts of the half-way non-ferrous giants have finally broken the balance, and the copper price breaks to the upside or hints at the development of a new round of rally.
The trend of Meijing copper shows that copper prices continue to run above the 2.0 uptrend line, indicating that the bullish trend remains good, and as copper prices break through the highs of several months, the price center of gravity has shifted up again. In terms of specific prices, the recent main support is at the 4.25 line, which has become a key support with an upward breakthrough of 4.50-4.48. The break of Meijing Copper also broke the 4.88 red pressure line, indicating that the short-term trend has resumed upwards, and the short-term and medium-term bullish trend has become more and more obvious. Copper prices are expected to maintain a strong rally, with the upper reference target at 4.60 and 4.70.