The short-term influence factor has not changed The copper market will continue to maintain strong
This week, the copper market officially entered the traditional off-season, but the price did not fall back. On the contrary, the market buzzed with the negotiations on the Chilean copper mine, and the copper price soared all the way to a new high after the Spring Festival. However, this time the price of copper rebounded suddenly. After downstream businesses responded, the price of copper rose by over a thousand yuan.
The Shanghai copper exhibited a strong rally, breaking the 54000 line at night on Thursday, and successfully refreshed its new high in April. However, it fell back slightly and the price fell below the 54,000 line. The price of spot copper was slightly weaker than the previous session, with a high price of 53,700 yuan/ton during the week.
The performance of Lun Copper was obviously stronger than that of the Inner Plate. Therefore, the ratio of Shanghai to London has been revised downwards, once falling below 7.40. The intensification of the strong, weak, and weak pattern of copper prices is also a continual increase in the amount of imported copper losses, which severely limits the entry of foreign electrolytic copper. However, for the country, this will not play a too good influence. Because of the significant growth in domestic copper production during the year, it is difficult for the domestic spot copper market to go out of supply. This naturally suppresses the trend of Shanghai copper prices. Therefore, in the short term, the weakness in the external price of copper prices is difficult to see improvement.
In the market, it is clear that the market does not adapt to the drastic changes in prices. For most downstream businesses, there is no better way to go than watching. Therefore, the demand for the spot copper market was extremely sluggish during the week. On the other hand, the rise in copper prices has naturally boosted the shipments of cargo holders. The supply of spot copper in the market was sufficient during the week, showing a clear oversupply situation. Affected by this, during the week spot copper premiums and discounts continued to decline. As of Friday afternoon, good copper premiums remained at around 20 yuan, even more flat copper and wet copper premiums. Speculators in the week were the main players in the market.
In terms of scrap metal, the price of scrap copper this week was substantially adjusted upwards, and the price growth of bright copper in the mainstream market was above RMB 1,000. However, under the multiple interferences of price and external factors, there are obvious differences in the scrap copper market around this week. The bright copper spread between the North and South markets has already exceeded 500 yuan. In terms of prices, with the rise in Shanghai copper prices, bright copper prices in many areas this week have returned to their highs in early 2018. A large number of scrap copper sources that have suffered losses in the early stages have been untied, and many sources even have small profits. Although the overall sentiment of the market this week was optimistic, the traders were slightly reluctant to sell. However, after the copper prices started to fall off the market on Thursday, many merchants have been shipping safe-haven operations. Obvious signs of increase in market supply of scrap copper lead the market transactions to improve, and from the current point of view, the sentiment of the copper scrap market is still generally optimistic.
In a comprehensive view, under the supply crisis caused by strikes and environmental factors, the funds have entered the market significantly and pushed up copper prices. The recent weaker US dollar also supported copper prices. The short-term influence factor has not changed, it is expected that it will continue to remain strong next week, with 7120-7400 US dollars of copper, 5.3-5.5 million of Shanghai copper and 4.62-4.76 million of scrap copper.