The Shanghai Futures Exchange's (SHFE) warehouse warrants for copper futures fell by 351 tonnes day on day to 31,433 tonnes on November 30, leading to a week-on-week decrease of 7,829 tonnes or 19.94%, and an increase of 4,809 tonnes or 18.06% month on month.
SHFE copper prices still fluctuated around Yuan 65,000/tonne. Meanwhile, China's refined copper spot trading remained light, leading to declines in the premiums. The trading on rate hike expectations has subsided, while the main market focus now is on the reality of inflation and the economic situation. At the same time, the rapidly worsening epidemic situation in China has led to the escalation of control measures in several major cities, which has significantly dampened demand for copper. The November manufacturing PMI data released today fell by 1.2 percentage points month on month to 48%, which shows that the economy in China further weakened.
Expectations of a global macroeconomic recession and China's economic stimulus policies continue to dominate copper prices. As a result, copper prices are unlikely to show a clear trend in short term. The release of new macroeconomic data and the impacts of China's epidemic policies are worth paying attention to.
Data Source: SHFE
Data Source: SHFE
Written by Edenlis Huang, huangting@mysteel.com
Edited by Ting Ao, aoting@mysteel.com