After the Spring Festival, although the metal market ushered in China's traditional consumer peak season, due to the weakness of downstream consumption, copper prices failed to continue the strong pattern of the previous period. The weakness of the opening year seems to be destined for the copper market to have a difficult performance in 2012.
The present copper market has the following four characteristics: First, LME stocks have dropped sharply; stocks at the Shanghai Futures Exchange have increased substantially; overall stocks of the three major metal exchanges in the world have increased; second, external strengths are weaker and weaker, and domestic markets are significantly weaker than LMEs. Market; Third, the peak season is not prosperous, and the demand for Chinese supplementary warehouses has not been fulfilled. Fourth, the premium for China's import trade has declined, the spot price has been at a discounted level, and there is a demand for destocking of finished products.
The future risk of the copper market lies in the fact that the overall market supply exceeds demand due to stock conditions. The increase in domestic inventories is significantly greater than the decline in foreign inventories. The short-term copper surplus in the Chinese market shows clear signs. It is worth noting that the LME copper cancellation warrants increased significantly near the Spring Festival, accounting for 28% of the total inventory, the highest level since 2004. The increase in cancelled warehouse receipts is likely to be related to the accidents at Japanese smelters. It should be said that LME copper stocks were controlled by some large traders at least 100,000 tons in the transfer process, which led to a short-term upward trend in the LME market. From the current position situation, the LME copper market seems to have not ended the short-selling market.
The false prosperity of the LME copper market in the early stage and the weakness of the domestic market are basically doomed to make it difficult for the copper market in 2012 to perform significantly. Although the LME market's squeeze position may come back, but from the downstream consumption situation, it is expected that this year's reasonable price range of copper prices in the 6000--8500 US dollars / ton. In the downstream consumer sector, the overall copper consumption situation is not optimistic. At the beginning of this year, the operating rate of copper pipe enterprises was only 55%, while the operating rates of mid- and fourth-quarter 2011 were respectively 80% and 70%. It is worth noting that global copper production is expected to increase by 1 million tons in 2012, and this increase of 1 million tons will require the demand of China's power grid to stimulate. This means that the growth rate of China's power grid investment must reach 15% in 2012 to ensure a balance of supply and demand in the global copper market.
The present copper market has the following four characteristics: First, LME stocks have dropped sharply; stocks at the Shanghai Futures Exchange have increased substantially; overall stocks of the three major metal exchanges in the world have increased; second, external strengths are weaker and weaker, and domestic markets are significantly weaker than LMEs. Market; Third, the peak season is not prosperous, and the demand for Chinese supplementary warehouses has not been fulfilled. Fourth, the premium for China's import trade has declined, the spot price has been at a discounted level, and there is a demand for destocking of finished products.
The future risk of the copper market lies in the fact that the overall market supply exceeds demand due to stock conditions. The increase in domestic inventories is significantly greater than the decline in foreign inventories. The short-term copper surplus in the Chinese market shows clear signs. It is worth noting that the LME copper cancellation warrants increased significantly near the Spring Festival, accounting for 28% of the total inventory, the highest level since 2004. The increase in cancelled warehouse receipts is likely to be related to the accidents at Japanese smelters. It should be said that LME copper stocks were controlled by some large traders at least 100,000 tons in the transfer process, which led to a short-term upward trend in the LME market. From the current position situation, the LME copper market seems to have not ended the short-selling market.
The false prosperity of the LME copper market in the early stage and the weakness of the domestic market are basically doomed to make it difficult for the copper market in 2012 to perform significantly. Although the LME market's squeeze position may come back, but from the downstream consumption situation, it is expected that this year's reasonable price range of copper prices in the 6000--8500 US dollars / ton. In the downstream consumer sector, the overall copper consumption situation is not optimistic. At the beginning of this year, the operating rate of copper pipe enterprises was only 55%, while the operating rates of mid- and fourth-quarter 2011 were respectively 80% and 70%. It is worth noting that global copper production is expected to increase by 1 million tons in 2012, and this increase of 1 million tons will require the demand of China's power grid to stimulate. This means that the growth rate of China's power grid investment must reach 15% in 2012 to ensure a balance of supply and demand in the global copper market.
Gasoline Generator,Fule Tank Generator Set,Silent Trailer Diesel Generator,Small Diesel Power Generator
XCMG E-Commerce Inc. , https://www.xggenerators.com