Copper prices remain high and range-bound, and the overall market transaction is very limited

On December 29, Shanghai copper opened low and fluctuated, slightly upward at the end of the day, the main month 2302 contract opened at 66440 yuan / ton, the highest intraday 66500 yuan / ton, the lowest 66170 yuan / ton, settled 66520 yuan / ton, closed 66430 yuan / ton, down 90 yuan, down 0.
14%.

During the Asian session, London copper fluctuated upward, and the latest quotation at 15:01 Beijing time was 8465 US dollars / ton, up 42 US dollars, or 0.
49%.

Domestic spot copper prices fell slightly during the day, Yangtze River spot 1# copper reported 66280 yuan / ton, down 100 yuan, discount 20-liter 20; The Yangtze River Comprehensive 1# copper price was reported at 66330 yuan / ton, down 140 yuan, and the discount was 10-110; Guangdong spot 1# copper price reported 66380 yuan / ton, down 180 yuan, premium 0-200; Shanghai spot 1# copper price was 66180 yuan / ton, down 120 yuan
.

The activity of the spot market continues to weaken, with most of the holders mainly shipping, and the terminal receivers gradually decreasing, and the overall transaction is very limited
.
Domestic optimism has faded, the dollar has jumped, non-ferrous metals are generally under pressure to the downside, the superimposed copper fundamentals are not strong, the spot has entered a discount state, it is difficult to support the upward trend of copper prices, and Shanghai copper is weak and volatile
.

Supply side, it is understood that December 29
, 2022.
CSPT finalized spot TC/RC guidance for copper concentrate in the first quarter of 2023 at $93/and 9.
3 cents/lb, unchanged
from the fourth quarter of 2022.
Increased supply-side disruptions overseas, raising supply concerns; Although the domestic copper concentrate processing fee has fallen, the overall operation is still at a high level, suggesting that the supply and demand at the mine end is still relatively loose
.
Recently, LME copper inventories have had limited changes, and Shanghai copper warehouse receipt inventories have rebounded during the week, but Shanghai copper inventory levels remain low
.

On the demand side, the double festival is close to superimposed on the downstream operating rate continues to decline, the actual demand of domestic terminals is weak, and the spot premium has entered a discounted state, which is difficult to support the rise
in copper prices.
Moreover, it is difficult to boost the downstream buying interest in the spot market, the pressure of holders to realize is increasing, demand is facing the dual impact of seasonal weakening and the spread of the epidemic, and the shutdown of downstream factories has increased, suppressing demand
.

Overall, the macro atmosphere is warm overall, but the weakness of the demand side limits the growth of copper prices, and low inventories are favorable or difficult to push copper prices to continue to rise, and copper prices are expected to remain high range shock operation
.