SMM Weekly Report Selection: Short term difficulties in digesting finished product inventory on the supply side. It is expected that copper prices will maintain a volatile trend next week

The Federal Reserve's interest rate decision is expected early next week. Although the Fed has stated that monetary policy is currently appropriate, the European Central Bank's commitment to accelerating bond purchases in the coming months makes this month's Fed meeting even more intriguing. In terms of economic data, paying attention to the US new housing construction rate data and US retail sales data will have a significant impact on market sentiment. With the continuous implementation of loose monetary policy by the Federal Reserve and the fiscal stimulus of the Biden administration, economic data is expected to record better than expected performance, which may boost market bullish sentiment. However, fundamentally speaking, it is difficult to digest finished inventory on the supply side in the short term, and weak downstream procurement may prolong the accumulation cycle, which will continue to provide negative feedback to copper prices. It is expected that copper prices will maintain a volatile trend next week.