Macro bearish factors dominate copper prices have recently broken downward

In terms of the market, on Friday, the average price of copper in Yangtze River nonferrous metal network 1# was 48620 yuan / ton, down 158 yuan / ton per day, and down 1.
61% on a weekly basis; The average price of the previous week was 49292 yuan / ton, down 672 yuan / ton compared with the previous week, down 1.
36%
from the previous week.

In terms of news, Russian Energy Minister Alexander Novak said on December 18 that Russia's crude oil production in December has exceeded 11.
42 million b/d, and the annual average production will increase by 200,000 b/d
.
As Saudi Arabia and Russia continue to record production and U.
S.
crude oil inventories continue to rise, international oil prices have plunged
again.

On December 20, the Fed announced that it would raise the US federal funds rate by 25 basis points to a range of 2.
25%-2.
5%, achieving the fourth rate
hike in the year.
The dollar recovered briefly on the back, but fell to a monthly low as expectations for GDP for the coming year and the number of rate hikes were
lowered.

In terms of inventory, copper stocks stopped falling and rose during the week, with a cumulative increase of 8,500 metric tons to 129725 metric tons, a cumulative increase of 7.
01%; Shanghai copper stocks decreased by 11,520 tons to 110702 tons, a decrease of 9.
43%, and a cumulative decrease of 25.
67%
in the past eight weeks.

Market news,

1.
Recently, a large porphyry-type copper (gold) deposit
lurking under the Cretaceous red layer was newly identified in the Anhui River area of Anhui Province.
A total of 660,000 tons of copper metal in 333 industrial grades were obtained from the whole deposit, with an average grade of 0.
54% Cu; It contains a total (associated) gold metal of 84 tons, with an average grade of 0.
69g/t
Au.

2.
India's National Green Court (NGT) on Saturday revoked the Tamil Nadu government's order
to shut down mining company Vedanta's copper smelter in Thoothukudi.
However, the Tamil Nadu government is likely to challenge the final order
of the NCFTU in the Supreme Court.
The restart of copper smelters may depend on the
court's decision.

Overall, the stock market and crude oil have plummeted, the downward trend of the global economy has become more severe, macro bearish factors dominate, copper prices broke down during the week; The Fed's fourth interest rate hike this year landed, due to the relatively dovish expectation of the interest rate hike strategy for the next year, the short-term dollar pullback is good for copper prices; London copper inventories have rebounded, and copper price support is also weakening; After the plunge, there is a technical rebound demand for short-term copper prices, but it is expected that the rebound space is limited, and it is expected to be weak and volatile
.