The main force of Shanghai copper opened low and rebounded, and downstream demand is still weak

Market focus: (1) Bank of Canada resolution statement: end QE, turn to reinvestment
.
The economic output gap is expected to close as early as the second quarter of 2022, compared with the previous forecast for the second half of
2022.
(2) The National Development and Reform Commission and the State Administration for Market Regulation jointly carry out special supervision of coal spot market prices, and strictly investigate and deal with violations of
laws and regulations.
(3) Japan's refined copper exports after customs clearance in September were 54145395 kg, down 38.
6%
year-on-year.
(4) According to Mysteel data, China's electrolytic copper inventory on October 28 was 88,600 tons, down 017000 tons from the 25th and an increase of 03,000 tons
from the 21st.

Spot analysis: SMM spot 1# electrolytic copper quotation 70420-71100 yuan / ton, the average price is 70760 yuan / ton, down 1340 yuan / ton
.
Changjiang Nonferrous Metal Network reported that it is difficult for merchants to ship goods for cash at the end of the month, cautious downstream procurement, a strong wait-and-see attitude, a weak trading atmosphere, and limited overall trading volume
.

Warehouse receipt inventory: the total number of Shanghai copper warehouse receipts in Shanghai was 11,886 tons, an increase of 53 tons per day; LME copper stocks were 143,650 tons, down 10,025 tons per day, down 21 consecutive days
.

Main position: Shanghai copper main 2112 contract top 20 long positions 93845, +2803, short positions 107559, +2192, net positions -13714, +611, long and short increased, net space decreased
.

Market research: Canada hinted that it may raise interest rates earlier than expected, and the dollar index fell slightly; However, China's policy to curb coal prices has become stricter, and the fall in coal prices has led to a decline in electricity costs, and market risk sentiment has been suppressed
.
Fundamentals, due to the high price of sulfuric acid, domestic refineries are more willing to schedule production under high profits; However, domestic power cuts and tightening crude copper supply have limited refinery operating rates, resulting in a lack of growth
in refined copper production.
At present, downstream demand is still weak, and overseas sources continue to flow in, and domestic inventories have rebounded recently; The destocking of foreign countries has increased significantly, and the volatility of copper prices has intensified
.