SunSirs: Copper Prices Slightly Decreased This Week (July 17-21)

Price trend

As shown in the above figure, copper prices slightly declined this week. As of the end of this week, the spot copper quotation was 68,680 RMB/ton, a decrease of 1.09% from the price of 69,435 RMB/ton at the beginning of the week and a year-on-year increase of 21.76%.

According to the weekly rise and fall chart of SunSirs, copper prices have fallen for 6 weeks and risen for 6 weeks in the past three months, with a slight decline recently.

Analysis review

Macroscopic aspect: US inflation declined more than expected, and the U.S. Dollar Index turned to shock after breaking down. Domestic Q2 GDP was lower than expected, and the economy maintained a weak recovery.

Supply side: The mining side remained abundant, last week's copper concentrate import index was 92.74 US dollars per ton, an increase of 1.07 US dollars per ton compared to the previous week. Recently, some copper, Russian copper, and Lomo African copper cancelled by LME's Asian warehouse had entered, leading to an increase in imported resources.

On the demand side: Overseas demand was weak, while domestic high prices suppressed demand. Last week, the operating rate of precision copper rods was 66.83%, a decrease of 1.09 percentage points compared to the previous week. The new field of domestic wind and solar energy was improving, with resilient demand for real estate completion and peak season air conditioning, while other traditional demand margins were weakening.

Market outlook

In summary, imported resources were gradually entering the domestic market, and the inhibitory effect of high prices and off-season on demand was evident. The weekly operating rate of refined waste copper rods had declined. Domestic inventory continued to accumulate and global inventory level was low. Copper prices are expected to show a weaker trend in the short term.

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