Supply shortage compounded by expectations of a Fed rate cut heating up, Shanghai copper and international copper futures hit new highs during the day session.

Industrial Futures Research Report indicates that the tight supply situation is still the main driver of the rise in copper prices. At the same time, the expectation of a rate cut by the Federal Reserve has increased, and the weakening of the US dollar also provides strong support for base metals. Minmetals Futures Research Report believes that there are still certain headwinds on the geopolitical front, but market focus has shifted more towards the Federal Reserve interest rate meeting. The increased probability of a rate cut has boosted sentiment. From an industrial perspective, copper raw material supply remains tight, and the expectation of smelting production cuts is pushing copper prices higher. In the short term, there is an expectation of marginal supply increase, but with downstream operating rates still providing support, copper prices are expected to maintain a strong trend.