Copper price fluctuated slightly this week (1.11-1.15)

1、 Trend analysis

 

This week, copper prices surged. By the end of the week, the spot copper price was 59670 yuan / ton, up 0.28% from 59503.33 yuan / ton at the beginning of the week, 2.96% from the beginning of the year, and 21.69% from the same period last year. This week, LME’s copper trend in March was weak. As of Friday, the Asian market closed at US $8010, down 0.92%; this week, the Shanghai copper index moved down, closing at 58690 yuan, down 2.69%. This week, the international copper index closed at 52200 yuan, down 2.85%.

 

At present, the basic supply and demand of copper market are neutral, and the suppression of epidemic situation on demand still exists. The short-term copper supply is still tight, and the processing fee is still at an absolute low level. Although the output will recover this year, most of the new capacity projects will be put into operation in the second half of the year. However, Malaysia’s tightening control measures will affect China’s imports of recycled copper in the first quarter.

 

At the end of the year, large-scale smelters continued to have high output, and the output of refined copper increased steadily. In December, China’s copper imports continued to decline on a month on month basis, but the import scale of the whole year in 2020 set a record. In the near future, with the coming of the off-season, the downstream demand may weaken marginally, but the total stock of the exchange is at a low level, reducing 8657 tons to 73685 tons. The current fundamentals support is limited, copper prices are expected to maintain short-term volatility weak trend.

PVA