Inventories are already at historic lows and Shanghai copper fluctuates in a short-term wide range

On the macro front, the U.
S.
Congress broke the deadlock and reached an agreement on a plan to raise the government's debt ceiling, avoiding the risk of
default.
In addition, the export data released by China yesterday also showed beautiful results
.
In terms of the epidemic, the current market concerns about the spread of the new crown variant seem to have weakened, and the prices of some commodities (such as black) rose sharply yesterday, but the reaction of the colored sector was relatively flat
.

In terms of fundamentals, since the fourth quarter of this year, the import volume of northern China ports has been significantly affected by the interference of epidemic prevention and control, and China's imports from Kazakhstan in October decreased by 87.
52% year-on-year to only 13,200 physical tons.

In terms of smelting, the tide of power cuts across the country basically ended in November, and the output of copper melting in that month was 825,900 tons, up 4.
6% month-on-month and 0.
5%
year-on-year.
However, mine-end disturbances and falling sulfuric acid prices inhibited smelter production, making it difficult for electrolytic copper production in November to return to the high level
of the second quarter.

In terms of terminal consumption, the final value of the PMI composite index of copper downstream industry in November was 51.
11, up 0.
74 percentage points from the previous month; in November, stimulated by the end of large-scale peak electricity consumption nationwide, coupled with the slight relaxation of the state's regulation of the real estate market, all walks of life benefited slightly, and the comprehensive PMI increased
.
In terms of breakdown, the production index rose 1.
07 percentage points to 51.
59, the new orders index rose 0.
8 percentage points to 50.
97, and the cancellation of power cuts and the fact that raw material prices remained low for most of November, stimulating many companies to actively produce and catch up with orders
.

In terms of inventory, the social treasury was 82,700 on December 3, down 07,700 tons
from last Friday.
Among them, Guangdong's inventory of 59,000 tons has approached a historical low, so it has driven the rapid upward
trend of copper liter discount in South China.
After increasing stocks last week, Shanghai destocked again by 01,700 tons
.
SHFE weekly destocking fell to 4,548 tonnes to 7,389 tonnes, the lowest level
since July 2014.
The LME destocking week is 5,450 tons to 78,000 tons, and the destocking trend is still continuing
.
Domestic and foreign inventories maintain a trend of decomposition, inventories have been at a historical low, the market is showing a tight supply situation, and copper prices are expected to fluctuate
widely.