SunSirs: Strong Demand Superimposed on Low Inventories, China's Copper Price has Risen Sharply

On November 16, spot copper was quoted at 53,705 yuan/ton, up 3.22% from the previous day, up 9.53% from the beginning of the year, and up 14.39% year-on-year. Today, the main force of Shanghai copper rose sharply to 53,800 yuan, and then oscillated within a narrow range, closing at 53,640 yuan, an increase of 2.80%. The 3-month LME copper contract oscillated after the opening, and oscillated after the intraday surge. The Asian market closed at 7170.5 US dollars, an increase of 2.44%.

Copper prices rose sharply, and the RCEP agreement at the beginning of the week boosted market sentiment. In October, macroeconomic data showed that the domestic economy had recovered steadily. The domestic terminal market demand performed well. Automobile production and sales showed growth for seven consecutive months. Real estate development investment increased. In September The electricity consumption of the whole society increased year-on-year.

According to data from the China Automobile Association, car sales in October totaled 2.573 million, an increase of 12.5% ​​year-on-year. As of October, automobile production and sales have shown growth for seven consecutive months. Among them, sales growth has remained above 10% for six consecutive months. According to data from the National Bureau of Statistics, from January to September, investment in real estate development across the country increased by 5.6% year-on-year, an increase of 1 percentage point over the previous eight months, and the real estate boom has rebounded for many months. In addition, the demand for cables, transportation, and electronic terminals has also recovered significantly.

In addition, the Shanghai Futures Exchange's weekly inventory continued to drop sharply. Last week, the inventory fell by more than 10%. The latest London Metal Exchange (LME) copper inventory on November 13 reported 165,200 tons, a decrease of 1,000 metric tons or 0.60% from the previous trading day. 

Based on the above situation, the macro boost, the supply and demand structure is good, the strong demand is superimposed on the current low inventory, and the future copper price may still have a certain upward space.

Related listed companies: Jiangxi Copper (600362), Tongling Nonferrous Metals (000630), Yunnan Copper (000878).

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.