The center of gravity of Shanghai copper has not shifted significantly downward, and it may remain in a wide range of oscillations in the short term

In terms of the market, spot is relatively scarce, a small number of holders cover the goods and sell sentiment is strong, but the overall buying acceptance is not high, it is difficult to smell a large number of actual transactions, overall, downstream fear of heights is still in a wait-and-see state, coupled with insufficient stocking mentality and more cautious sentiment, only a few maintain just demand for less procurement, more imported sources as procurement objects, the overall performance is more deadlocked, the trading atmosphere is still light
.

On the supply side, Chile and Peru, the two main copper suppliers, recently experienced a decline in production, Chile's world's largest copper mine went on strike over safety issues, and Indonesia banned primary copper exports
.
Despite the limited impact of the epidemic and other factors, China's electrolytic copper production increased
in August.
This week, due to the tight spot market and typhoons, the customs clearance of imported copper was slow; In addition, due to the epidemic, crude copper shortage and other issues, the production of some smelters is not smooth, and the Hubei smelter has been delayed in production, which has aggravated the market's concerns
about supply.

On the demand side, with the arrival of the peak consumption season, the overall prosperity of consumption has rebounded slightly, especially in the power investment, infrastructure projects and new energy sectors
.
In addition, the recent positive changes in the real estate market have helped to boost sentiment, but it should also be noted that the overall housing market remains a major drag on copper consumption
.
From January to August, real estate development investment fell by 7.
4% year-on-year, an increase of 1 percentage point
over the previous month.
However, domestic demand has improved month-on-month, and policy support has been increasing, stable growth is still the main theme, and the peak season can be expected
.

In terms of inventories, Shanghai copper stocks fell slightly last week, with a cumulative decrease of 506 tons to 35,865 tons, a year-on-year decrease of 1.
39%.

London copper stocks continued to decline last week, with a cumulative decrease of 3,450 tonnes to 102,000 tonnes, or 3.
27%.

For now, the Fed's aggressive interest rate hike is imminent, making the global economic outlook even darker, which will limit metal demand
.
Meanwhile, stronger-than-expected inflation in the United States in August boosted bets on aggressive interest rate hikes by the Federal Reserve, with U.
S.
indices holding high levels and stocks and crude oil markets bearish, weighing on risk assets such as commodities
.
However, the fundamentals are relatively good, and the frequent accidents at overseas mines have caused the market to worry about supply disruptions, coupled with the still tight domestic spot supply, and the pattern of low inventory and high premium has strong support for copper prices
.
Moreover, the steady domestic growth continues to make efforts, the central bank's interest rate remains unchanged, coupled with the arrival of the peak season of gold, silver and ten, the market as a whole is full of warm atmosphere, and it is expected that the short-term Shanghai copper wide range volatility trend
.