Copper prices supported by extremely low inventories There are replenishment requirements downstream after the long holiday

In the previous trading day, London copper opened at 7547.
5 US dollars / ton, peaked at 7588 US dollars / ton, and closed at 7462 US dollars / ton; It was down $97/ton, or 1.
28%,
from the previous session.
The internal market is resuming today
.

On the macro front, the economic outlook further deteriorated
as the September economic data further confirmed the high inflation and economic downturn, especially the impact of OPEC+ sharp production restrictions on oil prices and the increase in spillover signals from the Russia-Ukraine war.

During the long holiday, affected by the sharp decline in the US manufacturing PMI, the financial market once speculated about the expectation of slowing down interest rate hikes, the dollar fell sharply, and the US and European stock markets rebounded, but after the US released strong employment data, the speculation was extinguished, the US dollar index recovered, and the stock market and commodities turned down
.
Continued interest rate hikes in the context of high energy are the most likely, coupled with more and more signals spillover from the Russian-Ukrainian war, the strengthening of safe-haven demand, the continued strength of the US dollar and the increased risk of recession in Europe, it is difficult for financial markets to have a sustained rebound, bearish
.

In terms of the market, after the long holiday, the inventory of domestic mainstream consumption places increased by 16,000 tons, and the bonded inventory increased by 07,000 tons, which was lower than in previous years
.
Low domestic and bonded inventories remain major constraints
.
Before the holiday, the domestic bearish idea is the mainstay, the stock is not obvious, there are replenishment requirements downstream after the long holiday, and immediately face the change of month, this week copper prices are still under strong squeeze pressure, forming a support
for copper prices.

In terms of inventories, LME stocks increased to 143,000 tons, an increase of nearly 10,000 tons from before the holiday, reflecting the reduction of European demand, the return of inventories, and the spot premium fell back to $50, which is still at a high level
.
In addition, Shanghai copper imports returned to higher profits in late September, and it is estimated that the increase in imports will be stimulated, and the growth momentum of LME inventories may be reversed
again.

In terms of news, the LME has restricted new copper and zinc deliveries by Russia's Ural Mining and Metallurgical Company and its subsidiaries, or there is some support for LME premiums, but the actual supply has not been affected
.

At present, the macro continues to deteriorate, the economic momentum in the fourth quarter is further weakened, copper is still supported by extremely low inventories, this week's squeeze factors slightly supported copper prices, but the medium-term short pattern limits the height of the rebound, taking advantage of the rebound
before the run.