Shanghai copper is running strongly, and the market consumption margin is good

On the macro front, China's economy continued to recover steadily, the manufacturing industry was above the critical point for nine consecutive months, the recovery growth accelerated significantly, and the manufacturing boom expanded
.
Eurozone manufacturing production maintained growth in November, while manufacturing activity in Germany remained expanding strongly; The US small non-farm payrolls data was less than expected and the pace of job growth slowed, although the prospect of further stimulus packages and news of positive vaccine progress boosted market optimism
.

In terms of the market, in the week of December 4, domestic spot copper prices were running
at a high level.
The average price of Yangtze River nonferrous metal network 1# copper was 57360 yuan / ton, up 356 yuan / ton per day, and up 3.
20% on a weekly basis; The average price of the previous week was 54826 yuan / ton, up 2534 yuan / ton compared with the previous week, up 4.
62%
from the previous week.

In terms of inventories, Shanghai copper inventories stopped falling and rebounded last week, increasing by 4,871 tons to 97,783 tons, an increase of 5.
24%.

The destocking of London copper slowed last week, with a cumulative decrease of 1,100 metric tons to 149675 metric tons, a cumulative decrease of 0.
73%.

In terms of news, Chile's copper production fell 0.
2% in October, and total production so far this year is still up 0.
4%, and Chile's national copper company Codelco copper production in October increased by 3.
5%
year-on-year.
However, the current tight pattern of the mine has not changed significantly
.
Copper miners and smelters have been slow to agree on next year's copper concentrate processing costs, which remain low
.

On the whole, the current tight pattern of the mine end has not changed significantly, copper concentrate processing fees are still at a low level, copper market consumption margins are good, and manufacturing production in China, Europe and the United States has maintained growth, and the news of positive progress in vaccines supports the high operation of copper prices
.
China's economic recovery continues to accelerate, policies promote the consumption of automobiles and home appliances, and the consumption margin of the copper market is improving
.
Total global explicit stocks remain at a low level, and copper scrap imports are liberalized but the short-term impact is limited
.
However, smelter overhauls have been significantly reduced, production has shown an upward trend, and macro optimism has cooled, limiting the upward trend
in copper prices.