This week, the price of copper fell first and then rose. As of the end of the week, the spot copper price was 58038.33 yuan/ton, which was unchanged from the beginning of the week, up 0.14% from the beginning of the year, and up 25.78% year-on-year. This week, LME copper rose in March, closing at $7872.5, a weekly increase of 0.73%; this week, the Shanghai copper index rose to close at 58210 yuan in late trading, a weekly increase of 1.15%. This week the international copper index closed at 51,880 yuan, a weekly increase of 1.15%.

The long Chinese New Year holiday is approaching, and copper inventories are expected to accumulate, but the current global dominant inventory is relatively low; the downstream stocking before the holiday ends, processing companies and traders gradually enter a holiday state, and market consumption is seasonally weak. But this year, in order to control the spread of the epidemic, China encouraged people to celebrate the New Year in place. Many workers from rural areas may not return to their hometowns, so the slowdown in industrial activity may not be as significant as in previous years. In the past, hundreds of millions of people returned home during the Spring Festival for the New Year.

In addition, small non-farm farmers in the US have boosted market sentiment beyond expectations, demand in overseas markets has been boosted, and continued low concentrate processing fees indicate tight supply. The current copper concentrate processing fee continues to be low, indicating that the supply at the mine end is tight, and the current inventory has not yet seen a significant accumulation. This year's accumulation may be less than in previous years. The copper price is expected to maintain a narrow range of fluctuations.

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

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