Copper prices break below and lose the 100,000 level; institutions believe that the medium- to long-term fundamentals still support the market.

Ask AI · Behind the copper price adjustment, how do macro bearish factors affect market expectations?

[The copper price breaks down and falls below the 100k yuan mark; institutions believe support from the medium- to long-term fundamentals remains] Caixin News (Cailian She) March 28 reports: Since March, China’s nonferrous futures sector has shown a trend of retreat from high levels. Among them, the Shanghai copper futures have been especially prominent; after a long period of range-bound consolidation, they broke down to the downside, with the front-month contract falling below the 100k yuan/ton threshold. Since the beginning of this month, it has cumulatively dropped more than 8%, forming a stark contrast with the market’s earlier bullish expectations. Industry insiders believe that the core of this round of copper price adjustment lies in a shift in the market’s driving logic—from earlier sentiment dominated by bullishness to being dominated by macro bearish factors—amplified by the combined effect of multiple factors, including elevated inventories, the pace of demand recovery, and an escalation in geopolitical developments. Although copper prices have been significantly disrupted in the short term by macro sentiment and geopolitical developments, looking at the medium to long term, copper prices still have room to rise, supported by supply-and-demand fundamentals. (China Securities Journal)