Shanghai copper should not chase up too much to prevent the risk of pullback

In terms of the market, the average price of electrolytic copper in Shanghai Nonferrous Metal Network 1# in the last trading day was 55640, up 505, spot premium 155, premium expanded by 5
.
Last week, copper stocks fell by 3,854 tons, futures stocks fell by 15,000 tons to 31,100 tons, and current stocks are at a low level; LME copper stocks fell by 6,575 tons to 150,800 tons, and LME0-3 spot discount was around
$15/ton.
It is reported that the operating rate of wire and cable enterprises in November was 96.
83%, an increase of 2.
15 percentage points month-on-month, an increase of 3.
99 percentage points year-on-year, a slight recovery; orders for copper pipe enterprises continued to grow
steadily.

Recently the overall performance of non-ferrous metals is strong, and optimism dominates
.
The uncertainty brought about by the US election has receded, the good news for vaccine research and development has continued, the dollar index fell below 92, due to the impact of global liquidity easing and optimistic expectations for next year's global economic recovery, cyclical commodities and cyclical stocks have recently attracted attention, attracting capital inflows, market risk appetite has been boosted, copper, aluminum and zinc have reached yearly highs
.
In addition, the current overall inventory of non-ferrous metals is at a low level, which also provides strong support, and if the global economy recovers next year, it will drive enterprises to actively replenish inventory
.

Driven by fundamentals and macro sentiment, non-ferrous metals may continue to be strong in the short term, and they can be held cautiously in the early stage; However, it is still necessary to remain cautious to prevent the risk of pullback from speculating funds to profit and leave the market, and it is not advisable to chase up
too much.