Shanghai copper trend is strong, and the growth rate continues to rise

In terms of the market, the average price of spot 1# copper in the Yangtze River on July 26 was 59030-59070 yuan / ton, up 1300 yuan / ton; Liter 600-liter 640, up 20 yuan
.
On the whole, spot trading has improved, the sentiment of receiving companies has warmed up, and they actively enter the market to buy, high premium and low inventory pattern, trading activity is acceptable, and the transaction volume is slowly increasing
.

In terms of inventories, as of July 26, copper stocks on the London Metal Exchange (LME) decreased by 1,150 tons, or 0.
86%, to 132025 tons; As of 7-26, the warehouse receipts of copper and metal futures traded in the previous period were 9,103 tons, a decrease of 1,001 tons from the previous day; The rapid decline in inventories in the previous period reflects the gradual recovery of low consumption, and the support is significantly strengthened, focusing on the sustainability of
Shanghai copper inventories.

On the supply side, it is expected that the centralized maintenance period of the smelter at the end of the month will come to an end, and the output of electrolytic copper is expected to continue to increase
.
However, due to the recent closure of the import window, the increase in supply is limited
.
Overlay inventories have fallen sharply, market circulation has decreased, premium remains high, crude refining fees have decreased slightly, sulfuric acid prices remain at a high level, and smelting capacity continues to be released
.

In terms of demand, power grid investment in June increased by 26% year-on-year, 74% month-on-month, and power grid investment from January to June increased by 9% year-on-year, infrastructure and power grid investment growth may continue to land, but air conditioning entered the traditional vacation period in August, exports were further weakened, and the impact of continued high temperatures and the epidemic also inhibited construction, and terminal demand rebounded month-on-month but with limited
extent.
After the copper price rebounded, it led to downstream fear of heights, limiting the strength of
the rebound.
Recently, the epidemic has spread and aggravated, and the macro pressure continues to increase, and it is expected that the subsequent premium will decline
month-on-month.

Comprehensive analysis, Shanghai copper rose sharply during the day, up 1730 yuan, an increase of 3.
03%.

Market sentiment stabilized overall, the US dollar continued to fall from a high level, crude oil prices continued to recover and strengthen, non-ferrous metal pressure weakened, Shanghai copper rebounded sharply, and the intraday market continued to widen
.
Coupled with the pattern of low inventory and high premium, copper prices have been supported to a certain extent, and the performance of the new energy sector is strong, and the center of gravity of Shanghai copper has shifted
significantly upward.
However, it is still necessary to be cautious and continue to pay attention to the rebound of copper prices in the short term after the Fed's interest rate hike landed on Thursday
.