Good market sentiment drove copper prices to rebound

On the macro front, copper prices in the first half of last week came under pressure against the backdrop of the rebound of the US dollar index, and the market sentiment was good in the second half of the week, and the non-ferrous metals sector rose strongly, driving copper prices to rebound
.

On the supply side, power cuts in southwest China had an impact on electrolytic copper production in August, while the tight supply of recycled copper ended led to a continuous decrease in domestic copper warehouse receipt inventory, which strongly supported the overall copper price
.
Copper concentrate spot processing fees have continued to rise recently, which also reflects the easing of supply and demand at the mine end
.

In terms of demand, July vehicle production totaled 1.
863 million units, down 4.
1% m/m, 7.
5% m/m, and down 15.
5% y/y, and sales totaled 1.
864 million units, down 15.
5% y/y, and sales totaled 1.
864 million units
.
It has shown a downward trend
for three consecutive months.
The total sales of household air conditioners in July this year were 14.
669 million units, a year-on-year increase of 1.
9% and a month-on-month decrease of 11.
11%.

Domestic sales were 9.
865 million units, up 2.
3% year-on-year and down 4.
75% month-on-month; Exports were 4.
805 million units, up 1.
1% y/y and down 21.
83%
m/m.

In summary, copper prices were stronger last week, mainly due to tight supply, rapid inventory decline, unsatisfactory demand, entering the traditional peak season in September, and it is expected that copper prices will fluctuate strongly in the short term
.