Copper prices as a whole are in a volatile pattern

Last week's Eurozone central bank's interest rate decision was largely in line with expectations, and its low interest rates and accommodative monetary policy orientation will continue
.
This is still a positive factor
for copper prices.
In terms of supply and demand, automobile sales in August showed a certain recovery, although cable orders may not completely get rid of the impact of the consumption off-season in July and August, but in the following September and October, even if there is no significant recovery, but further weakness will not appear, so overall, copper prices can still maintain a relatively strong momentum
in the next 1 to 2 months.

In terms of spot, the downstream is gradually returning, the inventory is accelerating the decline, and the high premium is difficult to fall has become a short-term trend, so under such circumstances, it is still relatively favorable
for copper prices to rise.

In the medium term, on the macro side, the current global low interest rate and ultra-loose monetary policy are still more likely to continue in the future, which is a very favorable factor
for commodities.
In terms of fundamentals, at present, because major producers such as Chile are still seriously affected by the epidemic, the market is still worried about the supply situation in the second half of the year, but on the demand side, as the most important demand country, China's current control of the new crown epidemic is the most effective country
.
Therefore, it is expected that the probability of sustained recovery of domestic economic activity in the second half of the year is relatively high
.
Prior to this, the State Grid set the 2020 power grid investment plan at 408 billion yuan, but as of the first half of the data, the actual investment amount of the power grid was only about one-third completed, so there is also the possibility
of rushing work in the second half of the year.
It should be noted that at present, copper prices showing a strong trend may stimulate the acceleration of new production capacity or even exceed expectations, which may also suppress copper prices from the supply side
.