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What is the use of LME inventory changes?
When the supply of a commodity exceeds the demand, its price will fall, and vice versa. At the same time, the price will in turn affect the supply and demand, that is, when the price rises, the supply will increase and the demand will decrease, and vice versa. Therefore, the price and supply and demand interact, and an important indicator reflecting the relationship between supply and demand is inventory.

The inventory of copper can be divided into reported inventory and non-reported inventory, and reported inventory is exchange inventory.

Unreported inventory is the inventory held by manufacturers, traders and consumers all over the world. Because these inventories are published irregularly, it is difficult to count them, so they are usually measured by exchange inventories.

Extended data:

Precautions:

1, LME inventory change Because financing copper absorbs stable inventory, the price is still high. When the declining inventory is not enough to change the downward trend of copper prices, it is approaching the level that may trigger a local rebound in copper prices in the near future, so we need to pay attention to prevention.

2. When LME inventory changes, because there is still a big spread between China and the United States, financing copper can maintain a large and stable inventory, so although copper is in the middle inventory era, the real inventory should be close to the low level after excluding this part of inventory.

3. If LME inventory continues to maintain the ultra-low interest rate level, the overall spread between China and the United States will remain stable for a long time, which means that a considerable part of copper will still be absorbed by financing copper with medium inventory level in the future, making the copper price higher than the suitable range of medium inventory level.

4. It is advisable to short on rallies for a long time, but pay attention to the recent nearby level in the short to medium term. If it falls below, we should pay attention to prevent local rebound, otherwise we will maintain short-selling operation.

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