The center of gravity of copper prices has shifted upwards and has limited upward space

On the macro front, the preliminary manufacturing PMI in Europe and the United States in November rebounded more than expected, and the manufacturing industry in major developed economies showed slight signs of recovery, and confidence in the global economic recovery will be boosted; Thanks to three rate cuts, the US economy grew slightly more than market expectations and labor market tensions eased
.
Copper prices rose thanks to improved macro and increasing countercyclical adjustment in China, although gains were limited
by trade concerns between China and the United States.

In terms of inventories, Shanghai copper stocks continued to decline during the week, falling by 14,845 tons to 120192 tons, a decrease of 10.
99%, and a cumulative decline of 19.
82% in the latest four weeks, to the lowest level since October
.
Copper stocks continued to deteriorate, with a cumulative decrease of 10,300 metric tons to 208625 metric tons, a cumulative decrease of 4.
70%.

Global explicit copper inventories are at a low level, domestic scrap copper supply is shrinking, and counter-cyclical adjustment will continue to exert force, pushing the center of gravity of copper prices upward
.
However, domestic refined copper output still maintained growth, the shortage of the mine end has not yet worn out the refined copper, and in the short term, the market is skeptical about the actual recovery of the consumer side, and copper prices have fallen
slightly after reaching a stage high.

Copper Market News:

1.
Glencore's Mutanda mine in the Democratic Republic of Congo has suspended operations due to difficulties in obtaining sulfuric acid
.
Sulfuric acid is a key raw material
for copper and cobalt mining.
Glencore announced in August that it would suspend the mine for two years
from the end of the year.
The outage began on Monday, and more than a month later, the mine will enter the overhaul phase
.

Zambia's mining minister said the country's Konkola copper mine (KCM) could restart operations
next week after a delay of about two weeks.
The smelter was shut down in early October for annual overhauls, two days
earlier than originally planned.
The smelter has a capacity of 311,000 tonnes and Vedanta holds an 80%
stake in it.

Looking ahead, the recent uncertainty about the outlook for Sino-US trade has rekindled, risk aversion has returned, and many macro uncertainties have put pressure
on the market.
China's recent economic data has performed poorly, the downward pressure on industrial production is still large, counter-cyclical adjustment is increasing, and there is still a lot of space and potential
for investment in the infrastructure sector.
In the medium term, the bottom support of copper prices is obvious, the supply of copper concentrate and copper scrap is gradually tightening, and copper stocks are declining overall
.
In the short term, it is difficult to have bright spots in off-season demand, there is uncertainty in the macro side, the direction of the copper market, the price upward space is limited, and it is expected that the copper price will fluctuate next
week.