The re-transmitting of the market has a positive effect on copper prices

As the market hopes to resolve the European sovereign debt crisis will make progress, overnight market risk appetite has increased, US stocks and commodities have gained momentum, the day LME copper rose by 164 US dollars to 7434 US dollars / ton. Around the cyclical process of governance and spread of the European debt issue, the commodity market presents a shocking trend. Shanghai copper opened slightly lower today and traded within a narrow range. The main 1202 contract opened at 55,200 yuan/ton, and it closed at 55,460 yuan/ton throughout the day, up 90 yuan/ton from the previous day.

The recent commodity market has strengthened. The media reported on Monday (November 28) that EU leaders are negotiating a new financial agreement aimed at strengthening the ties between member states and preventing the euro zone from breaking up. Eurozone finance ministers’ meeting will be held in Brussels on Tuesday and it is expected that the meeting will finalize the details of the European Financial Stability Fund’s expansion to more than 1 trillion euros, and Greece’s ability to obtain the sixth loan of 8 billion euros will also be at the meeting. Make a decision. EU officials have pre-trialed the two plans in October, but the November 7 program has produced more technical details. Klaus Regling, chief executive of the EFSF, said on November 7 that the euro zone finance ministers will discuss the two options and hope that one or two of them can be implemented by December.

Copper news. The Collahuasi copper mine in Chile confirmed on Monday that two shifts of the mine's workers are on strike, but added that at the moment the operation of the mine is normal, which means that the strike did not affect the output. Union leaders said on Monday that some workers had gone on strike because of fears that the capital would be laid off. The Collahuasi copper mine in Chile is the third-largest copper mine in the world. Its output is equivalent to 3% of the total global supply. In the past year, abnormal weather and labor disputes affected its production. Shanghai's spot price for electrolyzed copper today reached a premium of 450 yuan per ton to 600 yuan per ton, the price of flat water copper was 56450-56650 yuan per ton, and the premium for copper in the premium was 568,600-56750 yuan per ton. The copper price in Shanghai copper futures rose weakly, and the factors at the end of the month as well as the fall of copper prices led to the outflow of large amounts of copper. The supply of the market increased significantly, and the price of water was increased. The transactions were also suppressed due to financial factors.

Overnight LME copper stocks were reduced by 1950 tons to 392,775 tons, and warehouse receipts were cancelled by 29,150 tons, accounting for 7.42% of the total inventory. Since the Eurozone has also received some good news, the commodity markets in these two trading days have shown a strong trend. However, I believe that the European debt problem is difficult to completely cure in the short term, and the measures taken are also to ease the market's worries. It is expected that the commodity market will not be able to rise sharply under the stimulation of these news. The technical graphic shows that the price of copper is oscillating within the current region. It is expected that this pattern will still exist. It is recommended to wait and see for the time being and observe the pressure on the period around 59,000.