Shanghai copper is weak and lacks strong support

In the external market, London copper rushed back down
last week.
The average price of LME copper in the first four trading days was 6457.
75 US dollars / ton, up 14 US dollars / ton per day; Last week's average price was 6484.
2 US dollars / ton, down 0.
41%
from the previous month.

On the macro front, China's industrial profit growth rate continued to accelerate in June, the manufacturing PMI in July was above the critical point for five consecutive months, production and operation generally maintained a recovery growth momentum, and the economic boom continued to recover
.
U.
S.
GDP plunged 32.
9 percent in the second quarter, though the Fed kept interest rates near zero, promising to use all tools to "support the economy, with a stronger-than-expected depreciation of the dollar positive for metals markets
.
" The eurozone economy is recovering, but activity levels remain well below pre-pandemic levels and the outlook remains uncertain.

In terms of the market, in the week of July 31, domestic spot copper prices fluctuated
in range.
The average price of Yangtze River nonferrous metal net 1# copper was 51814 yuan / ton, down 22 yuan / ton per day, down 0.
21% on a weekly basis; The average price of the previous week was 51896 yuan / ton, down 82 yuan / ton compared with the previous week, down 0.
16%
from the previous month.

In terms of stocks, London copper stocks continued to deteriorate last week, with a cumulative decrease of 13,600 metric tons to 128125 metric tons, a cumulative decrease of 9.
60%.

Shanghai copper inventories rose slightly last week, up 1,829 tonnes to 159513 tonnes, up 1.
16%.

In terms of news, the risk of strikes at Zaldivar and Centinela copper mines owned by Chile's large copper miner Antofagasta has been lifted, and the supply disturbance event has ended
.
However, in the second quarter, the copper production of large mining enterprises decreased mostly year-on-year, and there may be a 2% reduction throughout the year, and there is still some support
for copper prices on the supply side.

At present, there is no obvious change in fundamentals, the off-season effect is gradually emerging, there are signs of weakening downstream consumption, and domestic inventories have begun to accumulate, but LME inventories continue to deteriorate, overseas demand is gradually recovering, and Europe has become the main consumption force
.
At present, there is a lack of strong support, and macro disturbances still dominate copper price fluctuations
.