Copper prices fell back from high levels and fell below the high volatility range

Boosted by downstream inventory demand before the National Day and Mid-Autumn Festival and the low level of LME inventories, London Copper last Monday updated a two-year high; However, the second outbreak of the epidemic in Europe, risk aversion heated up rapidly, the global financial market was sold off, and the US election promoted market risk aversion, investors began to favor the dollar, the dollar index rose sharply to stand at the 93, 94 mark, pressure non-ferrous metals, Shanghai copper last Thursday night the lowest 50,000 mark, last Friday to close steadily
.

It is worth noting that in the past two months, imported copper scrap has decreased significantly, domestic resources are scarce, the price spread of refined scrap continues to narrow, and the continued decline in the futures will stimulate the alternative consumption of refined copper, and the space below copper prices is expected to be limited
.

In terms of the market, spot copper fell by 1380 yuan last week, and the good copper premium fell first and then rose, and now remains around
80 yuan.
National Day, Mid-Autumn Festival is approaching, last week the market entered the early replenishment stage, and due to the continuous decline in the market, except for last Tuesday, the market transaction roughly showed a gradual increase trend, especially on Friday the purchase increased significantly, downstream early replenishment, the last period of inventory fell by more than 20,000 tons
.
Because there is also a demand for cash before the holiday, it is difficult for the premium to rise
.
In terms of import profit and loss, the US dollar index rose sharply, but the RMB exchange rate fell from the high level of the year, copper prices were strong outside and weak at home, and the import profit window continued to close last week, and the gap narrowed to less than
500 yuan / ton.

Last week, Shanghai copper broke through the high range, tested the 50,000 support mark during the week, and stabilized
near the weekend.
At present, the fundamental situation of Shanghai copper is acceptable, but macro and news caused market panic and other phenomena drag down copper prices
.
The spread of the epidemic in Europe, many countries in Britain and France once again raised the degree of early warning, coupled with the US election in the imminent increase in fiscal policy uncertainty, once triggered market panic during the week, forming a collective decline in non-ferrous metals, dragging copper prices down to the bottom, but fundamentally, copper demand is still pinned on the recovery of domestic industry, after November power grid and terminal demand or still released, the market has expectations for recovery, driving copper prices strong resilience support
.
Copper prices are expected to stabilize, and the trend may be slightly stronger
.