Short-term risk events landed Shanghai copper rebounded slightly

On the macro front, although yesterday's Fed interest rate decision showed a very hawkish result, the market has certain expectations
that the Fed may accelerate the pace of tapering and even raising interest rates due to persistently high inflation.
Therefore, after yesterday's Fed interest rate meeting, the dollar did not actually rise, while copper prices showed a higher trend
.

From a fundamental point of view, the current premium remains low, but there was a certain recovery
yesterday.
In addition, the Lam Bambas copper mine agreement is difficult to reach and the mine will not be able to produce
from December 18.
In addition, the Benchmark for long single processing fees for copper concentrate is set at US$65/mt in 2022, compared to US$59.
5/mt
in 2021.

On the one hand, near the end of the year, whether it is downstream cable factories or copper rod enterprises, they will choose to control capital risks and appropriately reduce the amount of orders, so the willingness to purchase before New Year's Day will be suppressed to a certain extent; On the other hand, downstream consumption does show signs of
weakening.
As the north cools, orders from engineering and real estate terminals continue to weaken, and demand enters the seasonal off-season
around the Spring Festival.
In addition, due to the environmental protection problems of the Winter Olympics in the Ningjin area, some small cable factories have limited production and stopped production
.

From a macro perspective, the Fed's continued tightening monetary policy in 2022 is already a certainty, and a correction in commodity prices caused by reduced liquidity is almost inevitable
.
The short-term risk point is mainly the expected correction, and the medium-term is the pace
of global economic recovery.
It is recommended to hold the coin and wait for the rebound to look for opportunities
to sell short on the high.