Weaker dollar boosts metal trend Shanghai copper main force is running strongly

In terms of spot, on December 21, CCMN Yangtze River spot 1# copper trading price was 66410-66450 yuan / ton, the average price was 66430 yuan, up 660 yuan / ton; The premium was reported at 550-590 yuan / ton, and the average price was 570 yuan, up 10 yuan / ton
.
In the spot market, bullish sentiment has boosted holders to sell goods, downstream replenishment demand is general, low-priced goods are difficult to find, and transaction performance is not good
.

On the supply side, the domestic copper import window is closed, and the inventory in the bonded zone continues to increase
.
In the week ended December 17, the stock of electrolytic copper in the Shanghai Free Trade Zone was about 56,000 tons, a net increase of 18,000 tons
from the previous week.

On the demand side, the production and sales of major large and medium-sized copper rod enterprises in China are less than expected, the operating rate of downstream processing enterprises is still declining, continuing to fall month-on-month, most traders are mainly handed over orders, and the market transaction immediately enters a stalemate
after the end of demand.
The initial relaxation of epidemic control cannot drive a strong improvement on the demand side, coupled with the Spring Festival approaching and the increase in enterprises with early holidays, demand will remain sluggish
.

Shanghai copper stopped falling and rebounded on Wednesday, mainly due to the surge in the yen after the Bank of Japan unexpectedly adjusted monetary policy, the weakening of the dollar, the rise in US bond yields, and the weak housing market data in the United States also dragged down the performance of the US dollar, and the metal market generally recovered
during the day.
At present, the weakening of consumption and demand has formed upward pressure
on copper prices.
Domestic consumption remained weak, downstream enterprises started sluggishly, coupled with the end of the year, most enterprises began to reduce production and finished product inventory, raw material replenishment power is insufficient
.
However, global copper inventories remain at a historic low, and the domestic community is still dematerializing, spot supply is tight, and the recent premium has stabilized and increased, providing short-term support
for copper prices.

Overall, the macro atmosphere has improved, and the US dollar has provided support, but there is pressure on Shanghai copper supply and demand, and there is support below, so copper prices remain high and volatile
.