The rise in the dollar continues to put pressure on nonferrous metals, and Shanghai copper fluctuates weakly

On Wednesday, the Shanghai copper shock weakened, the intraday market continued to be pessimistic, the main month 2211 contract opened at 60,700 yuan / ton, and the daily close at 60,020 yuan / ton, down 340 yuan / ton, down 0.
56%.

Macro pressure continues to dominate the trend of metals, the dollar resuming its rally continues to put pressure on nonferrous metals, superimposed on the increase in copper inventories, the center of gravity of Shanghai copper has shifted downward, and Shanghai copper closed lower
under pressure during the day.

In terms of spot, on September 28, the trading price of Yangtze River spot 1# copper was 61530-61570 yuan / ton, down 160 yuan / ton; Liter 650-liter 690, down 10 yuan / ton
.
In the spot market, the downstream on-demand procurement before the National Day is the mainstay, the lack of excess stocking, the overall procurement demand of the market is gradually weakening, and the transaction atmosphere is gradually weakening, so the spot transaction is general
.

In terms of inventories, as of September 28, London Metal Exchange (LME) copper stocks increased by 2,700 tons, or 2.
06%, to 133,550 tons; Copper inventories continued to update more than a month highs for eight consecutive gains; As of September 28, the previous copper futures warehouse receipt was 4,004 tons, down 326 tons from the previous day;

In terms of supply, industrial enterprises in Guixi City have basically resumed work and production, and the resumption rate of copper base is 100%, it is reported that among the 177 enterprises that have resumed work and production, 90 enterprises with a capacity utilization rate of less than 50%, 65 enterprises with a capacity utilization rate of more than 50% (excluding 100%), and 22 enterprises with a capacity utilization rate of 100
%.
At the same time, a number of major (enterprise) projects in Guixi City seized the opportunity to resume work and production one after another, improve production capacity, and make up for losses
.
In addition, the current market copper spot supply is still in a recovery trend and imported copper also shows signs of increase, mainly because some foreign traders consider holidays, accelerate the unloading and customs clearance of spot goods arriving in Hong Kong, so imported copper continues to increase, and domestic and foreign copper stocks have forked
.

In terms of demand, both internal and external premiums remained at a certain high level, downstream transactions maintained a certain degree of caution, lack of excess stocking, and overall demand weakened
.
At present, before the National Day holiday, only the purchase of just needs is maintained, and there is no strong scene of crowding in consumption for the time being, and the improvement in demand is limited
.

On the whole, the "hawkishness" of Fed officials triggered aggressive interest rate hike expectations, and both the dollar and U.
S.
bonds moved towards multi-year
highs.
The strength of the US dollar has put heavy pressure on non-ferrous metal prices, and coupled with the recent rise in London copper inventories, the center of gravity of Shanghai copper has retreated
.
At the same time, the negative factors on the other side, the European economic outlook is worrying, the US stock market is in a bear market, and the World Bank's downgrading of China's growth prospects (the top consumer of metals) is also depressed, further exacerbating concerns about
the risk of a global recession.
However, domestic Shanghai copper warehouse receipts continued to fall, social inventories continued to run low, and the market still had optimistic expectations
for the peak season.
Therefore, copper prices coexist under macro pressure and fundamental support, and Shanghai copper still continues to be weak and volatile
.