The bearish sentiment quickly digested and Shanghai copper rose strongly

In terms of spot, on November 1, the trading price of Yangtze River spot 1# copper was 64480-64520 yuan / ton, up 630 yuan / ton; Premiums 270-310, down 100 yuan / ton
.
In the spot market, the trading atmosphere performance weakened slightly compared with the previous day, holders followed the price adjustment and shipment, and the downstream bullish sentiment entered the market positively, continuing to maintain the need for replenishment, and the overall transaction performance was stable
.

In terms of inventories, as of November 1, London Metal Exchange (LME) copper stocks decreased by 6,700 tons to 106425 tons, a decrease of 5.
92%; As of November 1, the warehouse receipt of Shanghai copper futures in the previous period was 25,040 tons, a decrease of 1,584 tons
from the previous day.

On the supply side, Chile's copper production in September fell 2.
6% from a year earlier to 439277 tonnes
, according to data released by Chile's National Statistics Institute INE.
However, domestic supply is looser than in the previous period, smelting profits continue to rise, smelting activity increased in September, and it is expected that there will still be an increase
in October.
However, global inventories remain low, import sources are still limited, and spot tradable sources are still tight
.

In terms of demand, domestic power grid engineering investment in September has completed 48.
7 billion yuan, an increase of 1.
04% year-on-year and 13.
79%
month-on-month.
But weakness in real estate continued to weigh on consumption performance, and a slowdown in factory activity in October and poor demand performance raised concerns
about sluggish demand for metals.

Overall, market sentiment changed rapidly, but the intraday bearish sentiment quickly digested, coupled with a weaker dollar, providing metal prices with an opportunity
to rebound.
The global economic growth environment is still pessimistic, with the Federal Reserve's renewed aggressive interest rate hikes and weaker domestic PMI data weighing on metals and raising demand concerns
.
Therefore, with copper prices still limited in the run-up to the interest rate decision, and global inflation remains high, the Fed is still likely to
remain hawkish.
However, copper fundamentals are not pessimistic, global copper inventories remain at historically low prices to provide support, and domestic cable, power, photovoltaic and new energy vehicle sectors have performed well, supporting
copper consumption.
Therefore, copper prices are in the consolidation range in the short term, and the technical focus is 62500-64000
.