The relationship between supply and demand of copper discharge is the basic factor that decides price change

Spot market transactions almost standstill, in the case of normal arrival of copper bar factory, the increase in storage speed continues to accelerate.

The relationship between supply and demand in Qingzi copper row market has not changed significantly, and the relatively loose supply situation does not support the rapid rise of iron ore price. However, recently, some enterprises or institutions released and hyped false information, artificially created expectations of tight supply and demand of iron ore, and gave speculative funds in futures and spot markets opportunities to hype, making iron ore prices divorced from the actual supply and demand, there was an abnormal surge. On the one hand, it will directly increase the production cost of steel mills, squeezing steel profits at the same time caused the price of construction steel, and then affect the construction progress of infrastructure investment projects this year, some steel mills have increased the ex-factory price in March; On the other hand, the rise of steel prices will be transmitted to the downstream manufacturing industry along the industrial chain, squeezing the profits of the manufacturing industry, which is not conducive to stable investment in the manufacturing industry.

The relationship between supply and demand is the basic factor that determines price changes. At present, the terminal demand for steel has not started obviously, and the blast furnace operation rate of major steel enterprises in China is at a low level. Relevant departments strengthen market supervision and crack down on speculation, and the price of iron ore is not strong enough. From the perspective of overseas market, with the economic recovery slowing down, steel and iron ore demand expansion stage has passed, overseas monetary policy accelerated to negative commodity prices, chongqing copper price adjustment may not end, will return to the fundamentals of supply and demand, is expected to still have a downward space.

The iron and steel industry has weak bargaining power in the industrial chain, and the high monopoly of supply makes the Copper market in Chongqing easy to be controlled by speculation factors. In order to ensure the smooth operation of iron ore market price, on the one hand, we should strengthen supervision to prevent excessive speculation of capital. On the other hand, in the long run, it is necessary to improve the guarantee capacity of iron ore resources, promote the recovery, processing and utilization of scrap steel resources, and enhance the ability to replace iron ore.