Core Viewpoint - The copper futures market is experiencing fluctuations, with prices expected to maintain high-level volatility in the near term [1] Supply Side - SHFE copper main contract closed at 80,610 CNY/ton, up 0.57% from the previous day, marking three consecutive days of gains [1] - LME copper price rose to 9,943 USD/ton, nearing its yearly high [1] - LME inventory has increased for two consecutive days, while COMEX inventory rose to 212,139 short tons, indicating a release of hidden inventory that may alleviate delivery pressure [1] Demand Side - The refined copper rod industry is entering a low season, with high finished product inventories and pressured processing fees leading to a decline in operating rates [1] - Demand from the power and construction sectors is weakening, and downstream buyers are hesitant to purchase due to high prices [1] Inventory Dynamics - Global visible inventory shows divergence, with LME inventory increasing while SHFE inventory slightly decreased; however, both remain at historically low levels [1] - The premium for flat copper has dropped from 165 CNY/ton to 90 CNY/ton, and the premium for wet copper has plummeted from 75 CNY/ton to 20 CNY/ton, indicating weakened spot market activity [1] Market Outlook - The copper market is expected to maintain high-level volatility in the next 1-2 weeks, with supply-side disruptions from mines and inventory increases balancing each other [1] - High prices are significantly suppressing demand, while macroeconomic factors such as Federal Reserve policy divergence and geopolitical tariff risks are affecting market confidence [1] - The market dynamics are shifting towards a scenario of strong expectations versus weak realities, limiting upward momentum while providing strong support on the downside [1]