Shanghai copper intraday volatility is strong, and the afternoon gain narrowed significantly

On the macro front, Fed officials said the Fed needed to continue to raise borrowing costs to control high inflation, though they were still discussing how quickly and how high interest rates should be raised, and the dollar index soared to a one-month high
.
A number of Fed officials supported a strong interest rate hike in September, and the dollar index rebounded, standing above 107 points, putting pressure on risk asset prices
.

In terms of industry, data from the National Bureau of Statistics showed that copper production fell month-on-month in July, a slight increase of 2.
1% year-on-year to 870,000 tons, and with the end of centralized maintenance, domestic copper production should have rebounded, but due to factors such as additional technological transformation and tight supply of crude copper, it fell
month-on-month.
In addition, the recent power shortage in many places, power cuts may cause disturbances to copper production and demand
.
According to the survey, due to the continuation of high temperature weather, the impact of power cuts on smelters has expanded the trend, and the output of Daye, Tongling, Minmetals, Zhangjiagang and Fuzhi has been damaged, and copper smelters have been affected by power cuts to reduce production
.
Copper spot premiums continued to rise this week, and supply disturbances have supported copper prices in the context of the current low domestic copper stocks
.

In terms of the market, Shanghai Metal Network 1# electrolytic copper quotation 62780-63120 yuan / ton, the average price of 62950 yuan / ton, up 650 yuan / ton from the previous trading day, the 2209 contract up 490 liters 580 yuan / ton
.
Today's spot market traded averagely, with premium down 115 yuan/ton
from yesterday.
The market supply has not grown, the spot premium is strong, the mainstream period flat water copper rose about 490 yuan, good copper rose about 530 yuan transaction is acceptable, after the second period of low price is difficult to find, flat water copper raised to about 540 yuan but the transaction is rare, the long order before the delivery of the spot premium is difficult
.

At present, the overall demand is still poor, and the willingness to raise prices downstream is not strong
.
Moreover, the reality of the gradual tightening of the Fed's monetary policy will not change, and the downside risks to the global economy remain.

Overall, macro long and short are different, demand margin is improving, short-term volatility is strong, and attention is paid to the 10-day moving average support
.