August 18 Copper Market Afternoon Review

Copper market afternoon comment: There is optimism about economic recovery, overnight London copper continued to rise to close up $83, the speed of domestic accumulation has slowed down, new energy vehicle production and sales may continue to improve, today's copper is rising
.

China's stock market rose sharply on Monday, the US stock NASDAQ also reached a new high, the US meeting adjourned, the stimulus package temporarily reached an impasse, yesterday's regional Fed manufacturing PMI fell sharply from July, concern that the impact of the second outbreak of the epidemic on the economic recovery may gradually be reflected
.
However, the fear index continued to fall, and the dollar index also fell yesterday to close below 93, reflecting the market's strong
risk appetite.
So far, data from all major economies in July have shown a strong recovery, coupled with long-term monetary easing expectations, the basic pattern of macro bullishness remains unchanged
.

In terms of news, the road for external transportation of Peruvian copper mines was lifted, and external shipments returned to normal in late August, but the bidding price for September and October shipments was still less than $50, indicating that copper mine supply will remain tight in the fourth quarter
.
Moreover, the epidemic situation in Peru continues to deteriorate, the number of new infections in a single day has exceeded 10,000, and the Peruvian government imposed a single-day curfew at the end of last week, and the risk of future copper mine production being affected is always present
.

Overall, August is the weakest time for consumption, and it is difficult to chase up the purchase of goods downstream, but inventories are gradually being digested, low inventories and high premiums have strong price support, and good fixed asset investment data suggests that demand will be strong in the fourth quarter, and it is about to enter the peak season in September, and copper prices are prone to rise and fall
.