Bullish factors resonate Shanghai copper closed strongly

In terms of spot, on November 7, the trading price of Yangtze River spot 1# copper was 66510-66550 yuan / ton, up 1790 yuan / ton; Premiums 80-120, down 140 yuan / ton
.
In the spot market, copper prices soared, spot premiums fell sharply, superimposed on the opening of import window profits, imported copper continued to flood into the domestic spot market, holders adjusted prices and shipments, receivers bullish sentiment into the market positively, trading volume increased
significantly.

In terms of inventories, as of November 5, copper stocks on the London Metal Exchange (LME) decreased by 4,050 tons, or 4.
57%, to 84,550 tons; As of January 4, the weekly inventory of the previous period decreased by 4,376 tons, or 6.
90%, to 59,064 tons; As of November 7, the warehouse receipt of Shanghai copper futures in the previous period was 19,227 tons, an increase of 526 tons
from the previous day.

On the supply side, the overseas Las Bambas copper mine in Peru resumed protests against the blockade activity, causing the copper mine to start reducing operations, and supply concerns increased.
Chile's copper production in September fell 4% year-on-year; Although there were fewer smelting overhauls in October, according to the data of 64 domestic copper rod sample enterprises, it can be seen that domestic copper rod production in October 2022 decreased by 5.
54%
month-on-month.
Among them, the comprehensive capacity utilization rate in October was 53.
89%, down 3.
83% from the previous month; There were 14 enterprises with an annual production capacity of more than 50,000 tons, and the capacity utilization rate was 55.
89%, down 3.
14% from the previous month; There were 50 enterprises with an annual production capacity of less than 50,000 tons, and the capacity utilization rate was 51.
89%, down 4.
51%
from the previous month.
Coupled with the continuous decline in Shanghai inventories, domestic supply remains tight
.

On the demand side, the demand margin will weaken after the peak season, and the weak trend of real estate will continue, and it will continue to drag down copper demand without improvement; However, the domestic press conference emphasized the balance between epidemic prevention and economic balance, and criticized the typical excessive epidemic prevention boom, which is actually good for the market, and the bull sentiment has been mobilized, falling back or not smooth, and the demand side is still well expected
.
In addition, the import profit window is still open, import expectations are still in place, the import premium is firm, and China's base metal imports have increased month-on-month, which contributes to the improvement of sentiment
.

Overall, the US non-farm payrolls data for October was mixed, coupled with the dovish tone of Fed officials, the market's expectations of a slowdown in the Fed's interest rate hike in December, and the US dollar tumbled to its biggest one-day decline since 2015, indicating that risk appetite was released and copper prices were boosted
.
Copper prices soared to a four-month high amid slowing macro
pressures.
The tight domestic supply and demand situation has eased, but the overall supply side is still tight, overseas copper mines have been disrupted and production has declined, although domestic production is expected to resume, but the output increase is relatively slow; On the demand side, the influx and premium of imported copper were firm, and the market feedback that China's base metal imports increased month-on-month, which contributed to the improvement of sentiment
.
In addition, the intensive start of infrastructure projects, the production and sales of new energy vehicles continued to prosper, and copper demand continued to rise; In addition, global copper inventories are still at low levels, and spot circulation still shows a tight situation
.
Therefore, under the resonance of many factors, Shanghai copper closed strongly and led the rally
.