echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Chemicals Industry > New Chemical Materials > Weaker dollar boosts metal trend Shanghai copper main force is running strongly

    Weaker dollar boosts metal trend Shanghai copper main force is running strongly

    • Last Update: 2023-02-02
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    On Wednesday, the main monthly 2301 contract of Shanghai copper ran strongly, and the intraday market atmosphere was warm, opening at 65160 yuan / ton, and closing at 65760 yuan / ton, up 600 yuan / ton, or 0.
    92%.

    The Bank of Japan unexpectedly adjusted monetary policy, the yen rose like a rainbow to suppress the dollar, the dollar weakened overnight, boosting the metal trend strongly, Shanghai copper stopped falling and rebounded
    .

    Shanghai copper

    In terms of spot, on December 21, CCMN Yangtze River spot 1# copper trading price was 66410-66450 yuan / ton, the average price was 66430 yuan, up 660 yuan / ton; The premium was reported at 550-590 yuan / ton, and the average price was 570 yuan, up 10 yuan / ton
    .
    In the spot market, bullish sentiment has boosted holders to sell goods, downstream replenishment demand is general, low-priced goods are difficult to find, and transaction performance is not good
    .

    On the supply side, the domestic copper import window is closed, and the inventory in the bonded zone continues to increase
    .
    In the week ended December 17, the stock of electrolytic copper in the Shanghai Free Trade Zone was about 56,000 tons, a net increase of 18,000 tons
    from the previous week.

    On the demand side, the production and sales of major large and medium-sized copper rod enterprises in China are less than expected, the operating rate of downstream processing enterprises is still declining, continuing to fall month-on-month, most traders are mainly handed over orders, and the market transaction immediately enters a stalemate
    after the end of demand.
    The initial relaxation of epidemic control cannot drive a strong improvement on the demand side, coupled with the Spring Festival approaching and the increase in enterprises with early holidays, demand will remain sluggish
    .

    Shanghai copper stopped falling and rebounded on Wednesday, mainly due to the surge in the yen after the Bank of Japan unexpectedly adjusted monetary policy, the weakening of the dollar, the rise in US bond yields, and the weak housing market data in the United States also dragged down the performance of the US dollar, and the metal market generally recovered
    during the day.
    At present, the weakening of consumption and demand has formed upward pressure
    on copper prices.
    Domestic consumption remained weak, downstream enterprises started sluggishly, coupled with the end of the year, most enterprises began to reduce production and finished product inventory, raw material replenishment power is insufficient
    .
    However, global copper inventories remain at a historic low, and the domestic community is still dematerializing, spot supply is tight, and the recent premium has stabilized and increased, providing short-term support
    for copper prices.

    Overall, the macro atmosphere has improved, and the US dollar has provided support, but there is pressure on Shanghai copper supply and demand, and there is support below, so copper prices remain high and volatile
    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.