Slow supply and weaker demand dragged down copper prices

In terms of spot, on November 24, the trading price of CCMN Yangtze River spot 1# copper was 65560-65600 yuan / ton, with an average price of 65580 yuan, up 110 yuan / ton; The premium was reported at 480-520 yuan / ton, with an average price of 500 yuan, down 30 yuan / ton
.
Near the end of the month, traders traded more long orders, spot trading slowed down, high-priced copper resistance psychology was strong, the trading atmosphere was deadlocked, and the overall purchase volume declined
.

On the supply side, the current refined copper production remains high, the spot TC price is high, and the smelting profit has rebounded, which has promoted the enthusiasm of smelters to resume production, and there are incremental expectations in the fourth quarter, but the supply of crude copper is tight and interferes, and the short-term supply pressure is not large
.
LME inventory warehouse receipts continued to increase, but the increase was limited, and Shanghai copper warehouse receipts continued to decline to 36,054 tons, down 3,208 tons
from the previous day.

On the demand side, the domestic demand side has entered the traditional seasonal off-season consumption cycle, and copper consumption has weakened pressure
month-on-month.
At present, the domestic epidemic situation is grim, downstream enterprises are restricted in procurement, the operating rate of medium and large enterprises continues to decline, the spot trading atmosphere is not good, and the downstream receiving sentiment is lower under the influence of high copper prices, and the transaction is weak
.
However, in recent days, the state has continuously released arrows to promote the "guaranteed delivery of buildings" policy as soon as possible, of which the second arrow "financial 16" was released, financial support for real estate to increase the weight, good for the property market, greatly promote the return of market confidence, promote the stable development of the real estate industry, and also benefit the improvement of copper metal demand prospects
.

Shanghai copper closed stronger as macroeconomic pressures eased and expectations of a slowdown in the Federal Reserve's interest rate hikes brought cautious optimism, and the dollar fell to a new low in more than a week, which was positive for non-ferrous metals
.
Coupled with China's continued increase in real estate policy support, it will help improve
the outlook for metal demand.
However, the upward range of fundamental support for Shanghai copper is limited, supply pressure is slowly increasing, and London copper stocks are slightly lowered by 350 tons, with a limited
decline.
Demand continued to weaken, spot premium was slightly lowered, downstream affected by the epidemic receiving sentiment was not high, the transaction atmosphere was not good, and copper consumption had pressure to weaken
month-on-month.
Overall, macro will dominate the price trend, fundamentals begin to show some signs of weakening, but low inventories still exist, forming a certain support for copper prices, and subsequent Shanghai copper may be in the shock finishing range
.