The trend of Shanghai copper is repeated, and multiple factors affect the intricacies

In November, the national consumer price index (CPI) rose 2.
3% year-on-year, an increase of 0.
8 percentage points over the previous month, and a 0.
4% month-on-month increase, down 0.
3 percentage points
from the previous month.
Overseas, on the afternoon of Thursday (December 9) Eastern time, the US Senate passed a bill to accelerate the increase of the debt ceiling by a vote of 64 to 36, further reducing the risk of
a government shutdown.
Preliminary observation of symptoms of Omicron variant virus infection showed only mild symptoms, and worries about the epidemic continued to ease; The People's Bank of China's RRR cut signaled steady growth, and market risk sentiment improved
.

In terms of fundamentals, the upstream copper mine imports increased significantly in the fourth quarter, copper mine inventories continued to increase, copper mine supply was relatively abundant, but the tight supply of cold materials still existed, coupled with the sharp decline in sulfuric acid prices, refinery production faced certain pressure, and there was no rush action at the end of the year, and the output increased
slightly.
In November, the domestic power rationing policy was relaxed, and the operating rate of downstream processing enterprises rebounded significantly, but near the end of the year-end demand off-season, downstream procurement willingness is low, and the sensitivity to copper price increases is high, mostly based on bargain hunting
.
Recently, domestic and foreign inventories have maintained a trend of decomposition, inventories have been at a historical low, the market is showing a tight supply situation, and copper prices are expected to fluctuate
widely.
Technically, the Shanghai Copper 2201 contract traded cautiously and maintained range-bound
volatility.

In terms of news:

1.
Bank of Canada: Leave the benchmark interest rate unchanged at 0.
25%, no longer considering inflation transitory
.
The output gap is expected to close
by mid-2022.
The job market is strong and inflation is rising
.

2.
According to SMM data, China's electrolytic copper production in November was 825,900 tons, up 4.
6% month-on-month and 0.
5%
year-on-year.
It is expected that domestic electrolytic copper production in December will be 850,700 tons, an increase of 3.
0% month-on-month and a year-on-year decrease of 1.
3%.