Shanghai copper trend is strong, market prices may usher in a strong recovery

On the macro front, China's economic indicators continued to improve in November, production and demand continued to recover, industrial production showed a steady and rising trend, and infrastructure investment growth accelerated
.
The eurozone economy is close to stabilizing, the December composite PMI exceeded market expectations, and the second wave of the epidemic hit the economy less than the first, but the economic recovery remains lackluster
.
The looming $900 billion US fiscal stimulus package was supported by progress on vaccines and a weaker dollar index
.

In the market, in the week of December 18, domestic spot copper prices fluctuated stronger
.
The average price of Yangtze River nonferrous metal network 1# copper was 58102 yuan / ton, up 200 yuan / ton per day, and up 1.
72% on a weekly basis; The average price of the previous week was 57338 yuan / ton, up 764 yuan / ton compared with last week, up 1.
33%
from the previous week.

In terms of stocks, London copper stocks continued to decline last week, with a cumulative decrease of 22,925 metric tons to 123,400 metric tons, a cumulative decrease of 15.
66%.

Shanghai copper stocks continued to deteriorate last week, falling by 7,870 tons to 74,222 tons, a decrease of 9.
59%.

In terms of news, Chilean copper mines have reached labor agreements, and the head of Chilean mining association Sonami said that he is not particularly worried about the supply shock
caused by the strike in Chile, a major producer.
Freeport and four smelters in China finalized copper concentrate processing fees for 2021, 4% lower than this year, the sixth consecutive year of cuts, which is not good for smelters, and mine copper concentrate supply remains tight
.

China's economy continues to recover, and its industrial production situation is improving, and it is expected to become the only major economy
in the world with positive growth this year.
Mine production is expected to increase next year, and mines that were temporarily closed due to the epidemic will resume production, although the overall increase is limited; Copper scrap imports under the new standard will also increase, and refined copper production is still picking up at the end of the year; However, copper concentrate processing fees remain low, which may dampen smelter production; China's automotive industry has accelerated its recovery, and China's automotive industry has accelerated its recovery, and the demand outlook is more optimistic
.
With the global economic stimulus package, copper prices may usher in a strong recovery, and copper prices are expected to remain high
.