Shanghai Jinpeng Daily Commentary: Shanghai Copper and Aluminum

The Shanghai Copper Daily Commentary We saw two consecutive days of London copper’s rapid rise in trading prices during the one hour trading session. After two tests at the $2,980, we expect London copper to go out of the rally. In the foreign exchange market, the euro remained firm against the US dollar. The objective impact considerations of rising base metal prices due to the devaluation of the currency should be strong and sustained. However, we heard from the voice of the newer Central Economic Conference last Sunday that the market’s demand for copper in the next year is expected to have a considerable reduction. At the same time, we also saw Macquarie's forecast for international copper prices next year. Its forecast of the entire copper supply problem is still quite objective. That is, the supply of copper in the first half of next year is still tense. Therefore, at the time of Christmas, we The lack of convincing reasons for the temporary correction of London's copper as a wave of decline. Today's Shanghai Futures Exchange copper trading showed a trend bottoming out. The uptick of 501 contracts in early morning was a signal for today's session, and the rapidity of the afternoon forward contract bounced from the consolidation range. This explains the fact that the price of forward contracts is considered to be low on the basis of normal price ratios. It is due to the rise in recent months and far months. The rebound in the overall price of today's Shanghai copper has also played a good supporting role in the downturn of copper. From a medium-term point of view, the domestic price structure of various contracts is still not conducive to short-selling long-term, but the signs of some changes in the fundamentals for some mid-line investors, there is a short-term demand, the contradiction can only be the scope of the band operation Reducing the flexibility of doing one-manipulation is an important factor in whether you can rely on short selling to overcome the market. We believe that there will be structural changes in the state's investment in the industry next year, and the large reduction in long-term government bond issuances is expected to show that the seven-year period that has mainly depended on investment in fixed assets to stimulate economic growth has passed. The role of macro-control will gradually be reflected in the market. , but the process will be a steady process of step by step. The ups and downs will not be formed in a short period of time. After undergoing a week-to-week policy experience, the domestic copper has reached a balance point today and the price has continued. In response to the request for recovery, we are looking at up to 3030--3050 U.S. dollars for London Copper. Shanghai Aluminum Daily Aluminium was encouraged by consumer buying. Aluminum prices rose by 14 US dollars to a high of 1,822 US dollars, reversing the recent decline. Strong momentum throughout the day, based on the rapid decline in inventory, good consumption is reflected, making aluminum prices out of lows, and showed a good desire to rise, the price is supported at 1820 US dollars, the high of 1880 US dollars is expected to test again. Shanghai Aluminum recovered gradually and the market reorganized around 15,700 yuan. The spot aluminum price rebounded slightly, and the quotation was at the level of 15,800 yuan in the morning. At the end of the year, the funds of aluminum companies were generally tight. Therefore, the calm of the consumer market is not surprising. At present, the aluminum price is consolidating within the range of $15,500 to $16,000. However, the price of aluminum has the potential to increase in shocks.

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