[Copper-Aluminum Weekly Review] Copper price is high and volatile, aluminum is hard to change

This cycle of copper prices once again shows the characteristics of high volatility, in this week's several trading days, LME copper and domestic copper prices in Shanghai jumped up and down, making most investors overwhelmed. Judging from the current situation, the period of heavy copper decline is still not too close, although there is news this week that there may be a substantial increase in stocks in the near future, but before the reality, at least the spot price has been at 30,000 Above, the whole market lacks the basis for the decline. It is estimated that next week, the trading of copper will still only allow short-term trading for most investors to avoid unnecessary risks. In the current cycle, the aluminum trend is about the same as last week. Although spot prices have risen somewhat this week, futures prices are still in a weak position because they do not have the main force to operate. It is estimated that during the period of time, the price of aluminum will still be dominated by shocks. This week, from the news point of view, Codelco, the largest copper producer in the world, predicted on Thursday that the average copper price in 2005 was US$1.10-1.20/lb, supported by strong demand from China. The state-owned copper company executive Chang Wei Yasu told Reuters that the company expects 2004 revenue to soar from $3.782 billion last year to $6 billion because of strong global demand and high commodity prices. He said: "This is a historical opportunity for Codelco. A good year, he said. The close cooperation between Chile and China will ensure that the supply of Chile is in step with the demand of China. Villarzu said: “The demand potential is very huge. If we cannot meet the medium-term needs, it will probably affect the industrial structure. The challenge we face is how to present future plans and reserves.” Because the investment funds are limited, Chile’s Codelco is looking for Instead of financial and expansion projects, the company is targeting China, the world’s largest copper consumer. On Thursday, Codelco and Minmetals Corporation signed a framework agreement to ensure supply to China and development funds in Chile. In terms of aluminum, the negotiations between Alcoa and the Becancour Union of aluminum smelters in Quebec have entered the fourth day on Thursday, the union and the company said. A trade union official told Reuters that the negotiators of the employer and the employee continue to negotiate on Thursday morning and until late in the afternoon the two parties still sit at the negotiating table. However, the two sides still refuse to disclose the details of the new round of negotiations. The strike was carried out on July 7 and about 800 workers went on strike. At present, the operation of the plant is only 1/3 of its production capacity. Alcoa has a 75% stake in the smelter. Technically speaking, Shanghai copper is still in a strong position, while LME copper is high and volatile. The trend of the market outlook is not very clear, technically waiting for a breakthrough.