There is still room for dematerialization of inventories, and the main force of Shanghai copper is open and volatile

Market Focus: (1) U.
S.
business activity slowed for the third straight month in August as capacity constraints, supply shortages and the rapid spread of the coronavirus Delta variant dented momentum from last year's pandemic-induced recession
, data firm IHS Markit said Monday.
(2) According to Mysteel data, the spot inventory of electrolytic copper in the Chinese market on August 23 was 140,300 tons, down 20,700 tons from the 16th and 17,500 tons
from the 19th.

Spot analysis: SMM spot 1# electrolytic copper quotation 68860-69060 yuan / ton, the average price is 68960 yuan / ton, daily increase of 690 yuan / ton
.
Holders continue to hold prices, downstream fears to stop and watch, traders enter the market on the dip but it is difficult to suppress prices, trading is deadlocked, and the overall transaction is average
.

Warehouse receipt inventory: the total number of Shanghai copper warehouse receipts in the day was 33,300 tons, a daily decrease of 1,000 tons, and a decrease of 5 consecutive days; LME copper stocks were 254775 tonnes, down 25 tonnes
per day.

Main positions: the top 20 long positions of Shanghai copper main 2109 contract 74868, -2402, short positions 80359, -2665, net positions -5491, +263, long and short reduction, net space reduction
.

Market research and judgment: the US economic data is not performing well, the market's concerns about the rapid balance sheet reduction of the Fed have eased, coupled with the signs of slowing down the global epidemic, risk sentiment has warmed up, and the US dollar index has come under pressure to pull back; Also pay attention to this
week's annual meeting of the central bank.
Fundamentals, copper concentrate spot processing fees have rebounded continuously, and the tight supply and demand have gradually eased
.
However, domestic smelters are still in the maintenance period, and the growth of refined copper production is slow due to the impact of power rationing factors; And downstream consumption shows that the off-season is not light, social stocks are slightly destocked, and copper stocks still have room
for dematerialization.
The performance of overseas demand is weak, and the rapid growth rate of Lunku limits the upward momentum
of copper prices.