September 23 Copper Market Brief Review

On Friday, Shanghai copper mainly fluctuated in a narrow range, and as of the close of the day, the main 1911 contract of Shanghai copper closed at 47130 points (0,0%)
.
The lower support level is 47,000
.
The global loose monetary policy has arrived, but the operating rate of downstream copper mills in China has not been significantly high, grid investment is weak, and the demand for refined copper is still weak
.
It is expected that the short-term Shanghai copper shock is mainly sorted, and in the later stage, with the gradual landing of domestic counter-cyclical policies, it may be strong, and the upstream and downstream of the operation can be appropriately purchased
according to their own conditions.

According to data from the World Bureau of Metal Statistics (WBMS) on the 18th, the global copper market was short of 27,000 tons from January to July 2019, and the supply side was even tighter
under the background of weak supply and demand.
In September, domestic wire and cable consumption has continued to pick up, exchange inventories have been decreasing, bonded zone inventories continue to decline, and the "Golden Nine Silver Ten" is expected to be optimistic
.

On the macro front, the Fed cut interest rates by 25bp for the second time, and the federal funds rate was cut from 2%-2.
25% to 1.
75%-2%.

Under the background of the interest rate reduction tide, liquidity continues to be released, which is positive for copper prices
.
And the market has expectations for the improvement of domestic consumption in September-October, which has a supportive effect
on copper prices.
Under the background of tight supply and expected demand, copper prices are prone to rise and fall
.