Market confidence rebounds Shanghai copper temporarily stopped falling and rebounded

Last week, London copper bottomed out
.
The average price of LME copper in the first four trading days was 7762.
75 US dollars / ton, down 48.
75 US dollars / ton per day; Last week's average price was 8351.
25 US dollars / ton, down 588.
5 US dollars / ton or 7.
05%
compared with the average price of the previous week.

On the supply side, South American copper ore disturbance is more, but the long-term TC processing fee is raised, which is expected to be 16.
9% higher than this year's annual long order, and it is expected that the overall supply of copper concentrate from the second half to next year is optimistic, and production may be expected
to rise.
Although some electrolytic copper enterprises in China have maintenance plans, smelters actively purchase under the stimulation of high profits, the operating rate increases, and copper production continues to increase
.
Long-term copper mine supply tends to be accommodative
.

On the demand side, despite the relaxation of epidemic control and the country's basket of measures to stabilize the economy, the domestic demand side is still weak, the consumption elasticity has not been reflected for the time being, the sharp fall in copper prices has not boosted the downstream demand for bargain replenishment, but the bearish sentiment has intensified, coupled with the real estate sector still has no significant improvement, continuing to drag down the performance
of copper consumption.
Looking at the off-season of traditional consumer goods such as white goods, the amount of copper used has decreased year-on-year, and it is still necessary to pay attention to consumption in the short term
.

In terms of spot, the market is still weak, fear of decline is strong, traders are cautious, on-demand procurement, the willingness to replenish is not high and the lack of new orders, the long-term order transaction is weak, and the overall transaction is not ideal
.

In terms of stocks, London copper stocks rebounded slightly last week, accumulating an increase of 6,175 tonnes to 133025 tonnes, an increase of 4.
87%.

Shanghai copper inventories continued to increase last week, accumulating an increase of 2,692 tons to 69,353 tons, up 4.
04%
from the previous week.

Overall, Shanghai copper plummeted last week, breaking through the 10,000,000 mark, down 6.
51%.

Heightened recession fears sent copper prices to a nearly 19-month low, and the dollar became a darling of safe-haven assets
.
Under the influence of the macro bearish atmosphere, the bear market scene intensified, prompting market sentiment to fall to the freezing point, and copper prices fell
sharply.
However, the bear wind has not been blowing wildly for the time being, and the quiet realization of the "fourth straight rise" of US stocks and China's $220 billion economic stimulus measures have helped the market rebound confidence
.
However, copper terminal consumption is still not improving, supply pressure will begin to reflect, inventory dematerialization continues to slow down, the follow-up or will continue to accumulate, Shanghai copper temporarily stopped falling and rebounded, stabilized at 59,000 yuan / ton line
.