Entering the traditional demand off-season, the copper market maintained a wide range of volatility

Fed's Powell dovish speech brought loose monetary policy expectations, the dollar index fell in the morning to release copper prices, pushing Shanghai copper back to the 59,000 range, but the market interpreted Biden's stimulus policy released in the morning has limited effect, non-ferrous metals fell collectively after noon, near the end of the year Shanghai copper into the traditional demand off-season, the fundamental role of the reduction of the recent copper price is mainly driven by the US index and macro news brought by market confidence, is expected to maintain a wide range of volatility in the near future, operationally, cargo merchants wait and see, downstream just need to wait and see
。

On the macro front, the current global low interest rate and ultra-loose monetary and fiscal policy are still more likely to continue in the future, which is a very favorable factor for commodities, and as far as Fed monetary policy is concerned, there are no conditions for immediately changing the current ultra-loose monetary policy in the future, so the dollar is likely to remain weak
.

On the fundamental side, the CSPT team finalized the copper concentrate processing fee floor price for the first quarter of 2021 at $53/mt and $5.
3/lb, down $5 and 0.
5 cents from the fourth quarter of 2020, and the future supply is still difficult to say loose
.

On the demand side, as the most important demand country, China is currently the most effective country in controlling the new crown epidemic
.
Therefore, it is expected that the probability of sustained recovery of domestic economic activity in 2021 is relatively high
.
In addition, the country's 14th Five-Year Plan attaches importance to the new energy sector, and will continue to support the demand for copper varieties
.