On September 30, SHFE Copper futures warehouse receipt was 3,729 tonnes, flat compared with previous trading day; the cumulative decrease in the past week was 1,527 tonnes, a decrease of 29.05%; the cumulative increase in the past month was 76 tonnes, an increase of 2.08%.
Copper futures price surged last night on the news of potential possibility of banning Russian metals. This year's sanctions against Russia do not involve non-ferrous metals, but due to the ban on foreign exchange receipts and payments, Russian traders have withdrawn from the LME market. Russia copper production reaches 1 million tonnes, export is nearly 700,000 tonnes. If the prohibition of new warehouse receipt generates, in the current extremely low inventory background, there is a squeeze pressure, but does not pose a real impact on global supply. As it is currently limited to discussion, short-term effects may not be sustainable.
Spot imports have been profitable for more than a week, reflecting the objective demand for supplementary imports under the extremely low domestic inventory pattern, which may soon attract LME stocks to return to China.
Affected by the tight arrival of imports, copper holders insisted high premium, traders still had purchase requirements, and the downstream industry demand differentiation was more obvious. Large and medium-sized copper rod factories pre-stocked while other downstream producers stocking demand was general. Overall, the stocking demand has ended. However, considering that the holiday is long, and the downstream is mainly bearish, there are not many stockpiles, and after the holiday, it faces replenishment requirements, and the overall support of spot is still strong.
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