Copper will maintain a weak operation in the short term

In terms of the market, the domestic spot copper price rose slightly, the Yangtze River Nonferrous Network 1# copper price was reported at 51940 yuan / ton, up 110 yuan, copper discount 90-discount 30; Guangdong spot 1# copper price was 51950 yuan / ton, up 90 yuan; Yangtze River spot 1# copper price was 51960 yuan / ton, up 100 yuan, copper discount 60-discount 40; Shanghai spot 1# copper price was 51970 yuan / ton, up 140 yuan
.
The copper price in the intraday market did not change much, and after several consecutive days of decline, the copper market showed signs of stabilization, attracting many downstream copper manufacturers to enter the market to inquire and purchase, and the transaction improved earlier
.
Due to the generally low number of materials prepared by downstream manufacturers before the holiday, with the gradual recovery of production after the holiday, manufacturers have rigid replenishment needs
.
However, the holders have a strong mentality of selling and have made significant premium quotations
.
This is mainly due to the continuous shortage of recycled copper supply due to environmental factors, low holdings and difficulty
in replenishment.
Moreover, the continuous decline in copper prices after the holiday caused a loss
of inventory in the hands of cargo holders.
Due to the significant increase in recycled copper, the price difference with electrolytic copper narrowed to the limit, thereby stimulating the market demand for electrolytic copper to increase, and the electrolytic copper discount situation was also eased
.

In terms of inventory, the inventory in the previous period increased by more than 40,000 tons
.
As the profit window for imported copper opened in early March, it is expected that there will be an influx of imported copper in the future, and domestic inventories still have room
to rise.
But gradually enter the delivery cycle, the current next month price difference is still about 200 yuan / ton, the market for the subsequent spot discount narrowing still has expectations and willingness, but because the current major traders inventory is not low, capital pressure is large, cash is still urgent, so next week the market is facing the game between supply and demand and the contradiction between capital and delivery, pay close attention, the price difference will not narrow a lot
.

Scrap copper market, this year's decline in scrap copper imports has become an inevitable trend, so the domestic scrap market supply is still tight
.
If copper prices cannot rebound strongly in March, then some traders will inevitably be difficult to get rid of the high-priced scrap that they hoarded years ago, which will significantly aggravate the tight supply situation in the scrap copper market, and then it will be difficult to see a significant improvement in market transactions
.
Therefore, it is necessary to pay close attention to the impact
of the two sessions and policy factors on copper prices in March.

Recently affected by the weakening of the US dollar and the improvement in spot market demand, copper prices have ushered in a long-term rebound
.
However, the narrowing of spot discounts is not as expected, indicating that consumption has started slowly, and the resignation of US presidential economic adviser Cohen in the morning may rekindle market fears of a trade war, and the copper market is expected to fall into a volatile pattern
again.