November 4 Shanghai copper brief commentary

Overnight, the Fed interest rate was in line with the expectation of tapering bond purchases, and the interest rate hike was delayed, and the dovish attitude had little impact on the US index and copper markets
.
Domestically, the economy and consumption are under greater pressure, the weakness of consumption and supply at both ends dispels the unilateral market, technically Shanghai copper opens the range shock space after rushing higher, the current copper market is still in the shock pattern, pay attention to the 7-71,000 first-line shock situation
.
It is expected that the Shanghai copper in the night disk may have a downward exploration action, testing whether the space above the 70,000 support level is possible
to sort out.

From a fundamental point of view, affected by the dual control of power shortage and energy consumption, China's electrolytic copper production in October was 789,400 tons, down 1.
7% month-on-month and 3.
9%
year-on-year.
In terms of consumption, the basis BACK structure expanded rapidly in the next month, coupled with the disturbance of the epidemic in Changzhou, several large downstream households temporarily stopped, and the downstream showed a cautious wait-and-see attitude, and the Shanghai copper premium declined
.
Inventories in Guangdong are still at a low level, the willingness of cargo holders to ship is not high, and the copper premium in South China is rising
.