Both internal and external inventories are declining, and the support is strengthened below Shanghai copper

In terms of spot, the average price of spot 1# copper in the Yangtze River on August 8 was 61480-61520 yuan / ton, up 1000 yuan / ton; Premiums 340-Premiums 380, up 10 yuan
.
In the spot market, close to the change of month, some companies are waiting for the next month's quotation, the downstream fear of heights and the sentiment of receiving goods is reluctant, superimposed on the high premium transaction is more and more difficult, the trading activity once declined, and the overall transaction was few
.

In terms of inventories, as of August 6, London Metal Exchange (LME) copper stocks decreased by 750 tons, or 0.
58%, to 127,850 tons; As of August 5, the weekly copper inventory traded in the previous period decreased by 2,257 tons, or 6.
10%, to 34,768 tons; As of August 8, the warehouse receipt of copper futures in the previous period was 4,553 tons, down 50 tons
from the previous day.

On the supply side, the global copper mine output report in the second quarter still continued to decline, and supply concerns rose; Domestic smelting output is less than expected, maintenance exceeds expectations and crude copper tension inhibits copper output, but subsequent inventories may be expected
to recover as smelter maintenance ends and production resumes and new projects come into operation.

In terms of demand, domestic real estate has passed the most difficult stage after the implementation of various policies, coupled with the peak investment of the power grid in June and July, the sales of new energy vehicles exceeding expectations and the growth rate of the photovoltaic industry will support copper consumption in subdivisions, and demand is expected to continue to improve
.

Comprehensive analysis, Shanghai copper continued to rise during the day, rising 1220 yuan, an increase of 2.
04%.

The strong performance of the US non-farm payrolls data in July boosted the dollar to the upside, but copper reflected limited to this, and the intraday market atmosphere was warmer, and copper prices rebounded sharply to break through the 60,000 integer mark
.
On the other hand, the pattern of copper supply and demand continues to improve, domestic and foreign inventories continue to decline, and there is support
below copper prices.
Meanwhile, China's 18% increase in exports in July was more resilient and helped ease concerns
about metal demand.
Coupled with the European energy crisis, it is likely that production operations of major industrial users will continue to be affected, and producers of metals such as copper may face production stoppages or production cuts
.
In the short term, copper prices may continue the rebound trend, it is recommended that bears wait and see
for the time being.