Price trend

As shown in the figure above, copper prices rose slightly this week. As of the end of this week, the spot copper price was 72,926.67 RMB/ton, up 2.87% from 70,890 RMB/ton at the beginning of the week and up 8.76% year-on-year.

According to the monitoring data of SunSirs, in the past three months, it rose in 6 weeks and fell in 5 weeks, and remained flat in 1 week. The overall trend of copper prices has been volatile recently.

Analysis review

Supply and demand: The supply of copper concentrate is temporarily abundant, but the disturbance in the production of copper mines in Peru and Chile has increased, raising the expectation of a reduction in copper mine supply. The supply of secondary copper has been tightened, and the VAT reform policy on recycling has affected the short-term domestic supply of secondary copper. Before and after the implementation of Caishui No. 40, the demand for copper increased significantly due to market procurement, making the supply of goods with 13% value-added tax invoices scarce and prices high. The production profits of downstream processing plants were poor, and the demand recovery of cable companies was not ideal. In February, the sales volume of the automobile industry is expected to be 1.666 million units, a month-on-month decrease of 34.2% and a year-on-year increase of 13.8%; the cumulative sales from January to February are expected to be 4.196 million units, a year-on-year increase of 5.7%.

Market outlook

To sum up: the conflict between Russia and Ukraine has not eased yet, the external market has broken through to the upside, domestic consumption is expected to recover marginally, and domestic growth is also expected to be stable. It is expected that copper prices will fluctuate to rise.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.