Shanghai copper is mainly volatile in the short term

On the macro front, relevant officials of the Federal Reserve have said that the current US economy is improving, economic data provides a solid basis for future interest rate hikes, and the possibility of raising interest rate boots at the end of the year has increased
again.
But it also indicates a slow and steady process
of interest rate hikes in the future.
OPEC crude oil production hit a record high
in November.
OPEC agreed
to cut production late last month.
The rise in crude oil production means that OPEC's task of cutting production has become more onerous
.
It is expected that crude oil prices may find it difficult to remain relatively high
.
The dollar has been lower in recent days and is difficult to sustain
around 101.
The RMB has recovered, and the depreciation channel has slowed down
in the short term.
The retreat in the US dollar index provided some support to non-ferrous metal prices, most of which were red and firm.

In terms of the market, today's market supply is acceptable, imported brands and domestic brands are equally divided, wet copper still continues to be low prices, traders purchase a small amount of good copper, and the trading situation has declined
significantly in the afternoon.
Downstream manufacturers still have weak demand and few purchases
.
The afternoon discount is slightly higher than the morning discount, with good copper reporting at B00-B20 yuan, flat water copper C40-C10 yuan, and wet copper reporting around C200-C170 yuan
.

On the news front, Congo's central bank said copper production from January to September fell sharply by 9% from a year earlier to 734,640 tonnes
.
Cobalt production fell 9.
1 percent to 56,760 tonnes in the first nine months
of the year.
Congo is the world's
largest producer of cobalt.
Congo's copper production fell
in 2015 for the first time since 2009.
NKC Africa Economics expects DRC's copper and cobalt production to decline by 6.
3% and 7.
2%
respectively in 2016.

Overall, the main positive factors in the current copper market are the future reduction of copper mine supply and the improvement of demand between China and the United States, while the main negative factors are the Fed's interest rate hike and the weak actual market demand at the end of the year
.
At present, the bullish and bearish factors cancel each other to a certain extent, and it is difficult to bring clear directional guidance to copper prices, so it is expected that Shanghai copper will still be dominated by a wide range of volatility in the short term, and the shock range is between
46000-48500.