Financial attributes continue to push copper prices to accelerate the release of mine production capacity

Quantitative easing environment highlights financial attributes: Fed ** Bernanke renewed his remarks on October 15. Under the conditions of weak economy and high unemployment rate, the second quantitative easing monetary policy will become an important measure to stimulate the U.S. economy, although it may be Bear the risk of rising inflation.

Shen Wan research believes that before the United States discusses monetary policy on November 2, the expected quantitative easing of this currency will not materially change. The loose monetary environment means that the opportunity cost of investing in the ** market tends to be low, and funds will still flow into basic metals, especially copper metal with a better supply and demand pattern, thus boosting prices. The financial properties of copper metal in a fluid and abundant environment will surely be strengthened. The consumption of social inventories will basically strengthen the support of copper prices: due to the frequent mine disasters and power supply shortages in major copper mining regions, the growth rate of global refined copper supply (-5.5%) is far less than the demand growth rate (3.3%). 70,000 tons, it is expected that the global supply of refined copper will continue to grow at a low rate in the next 3-6 months.