Lunar Copper Due To The Christmas Holidays Closed.

The Lunar Copper market was closed for the Christmas holiday, while the Shanghai copper market opened with the main 2402 contract at 69130 yuan per tonne. Initially, the market bottomed out at 68910 yuan per tonne, before bouncing back up to reach a high of 69230 yuan per tonne. However, the market soon experienced a slight dip before finally settling at 69090 yuan per tonne, with a turnover of 0.9 million, and a 0.04% increase in the number of holdings to 155,000. Due to the holiday season, there was little news from overseas, and the market was largely in a wait-and-see state.
SMM research showed that, as of December 25th, copper stocks in SMM's national mainstream area fell by 0.62 million tonnes compared to the previous Friday, to 50,400 tonnes. This was lower than the level recorded during the same period last year, at 78,700 tonnes and 29,300 tonnes, respectively. The decline in inventory was attributed to increased refinery direct downstream activity, and ongoing downstream replenishment demand. Importantly, this week also saw a continuing flow of imported copper into the domestic market, and refineries had a need to clear inventory before the end of the year. As a result, domestic copper supply was expected to increase accordingly.
However, on the demand side, many enterprises have already stockpiled, and processing enterprise demand was gradually weakening as the end of the year approached. As a result, demand for electrolytic copper was expected to decline. As far as prices were concerned, copper was expected to remain strong, driven by macro sentiment.