On the 11th, spot copper was quoted at 5,1965 yuan/ton, down 0.46% from the previous day, up 5.98% from the beginning of the year, and up 10.13% year-on-year. The main force of Shanghai Copper oscillated after the opening and closed at 51,930 yuan, a 0.40% drop. The 3-month LME copper contract opened slightly lower and rebounded, closing at $6,952, a decrease of 0.14%.

On the supply side, the copper concentrate market remains tight. However, the performance of copper imports from June to September was amazing. The average monthly import volume of refined copper reached more than 500,000 tons. According to the import volume of unwrought copper and copper materials in October, the volume of refined copper imports in October was also about 400,000 tons. With a large amount of imports, refined copper is gradually becoming abundant. In terms of demand, domestic terminal consumption is diversified, cable demand is not performing well, and automotive, home appliances and other fields have a growth-driven effect. The next two months will focus on electricity data. In the spot market, traders are cautious, and the downstream just needs to purchase mainly, and the overall transaction is average.

Based on the above situation, there is a possibility of acceleration in demand for power grid investment at the end of the year. Automobile production and sales have shown growth for seven consecutive months. Copper processing fee TC remains low, copper prices are supported at the bottom, and the space below is limited.

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

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