[SMM analysis] July real estate data to help copper prices on the impact of the calculation of the?

SMM8, 15th, news:

Copper terminal consumption is mainly concentrated in electric power, household appliances, automobile, construction and other industries, of which the power industry accounts for nearly 50%, followed by household appliances, transportation, construction and other industries. Copper used in the construction industry is mainly reflected in the real estate industry, and the real estate industry is closely related to the power industry. Housing construction will drive the demand of the power industry, and housing will drive the demand of the home appliance industry after the completion process. Therefore, the impact of real estate on the copper market far exceeds the industry itself.

The use of copper in the real estate industry is very large, including not only the real estate development process, but also the demand for related supporting facilities after the late completion. There is a great demand for electric power in the process of real estate construction, so the copper consumption of the real estate industry is closely related to wires and cables, mainly because the house needs to connect power distribution equipment, including urban distribution network and district distribution station in the process of construction. At the same time, the supporting household appliances after the completion of the house is also the main source of copper consumption. Therefore, the impact of the real estate industry on copper demand is not limited to the industry itself, but its linkage drives the entire downstream copper demand.

It was announced in July that real estate investment totaled about 7.2843 trillion yuan, an increase of 10.6 percent over the same period last year, and an increase of 18.23 percent from the previous month, but down significantly from the cumulative growth rate of 33.72 percent in June. The new real estate construction area totaled 1.25716 billion square meters in July, an accumulated year-on-year growth rate of 9.5 percent, a slight decline from the previous month, and the real estate completed area totaled 373.31 million square meters in July, down 11.3 percent from the same period last year. The sales area of commercial housing totaled 887.83 million square meters in July, down 1.3 percent from the same period last year. Overall, real estate fell in July. Real estate completed area is one of the important indicators to measure real estate copper consumption, the cumulative real estate completed area this year continued to negative growth, copper consumer demand is difficult to say good, but also and SMM research wire and cable enterprises, enterprises reflect the lack of low-voltage cable orders to take care of each other. The state actively promotes the policy that housing is used to live, not to speculate, and it is expected that the real estate industry will show a stable pattern in the future. As an important demand port for copper terminals, the slowdown in the real estate industry will also put pressure on the copper demand side. In the short term, the July data show a weak pattern. On the fundamental side, the pull of demand on copper is limited, and Shanghai copper is beset with difficulties; on the supply side, the tightening of the mine end and the weakening of copper concentrate TC are temporarily difficult to transmit to the electrolytic copper production, and the smelter supply after maintenance is relatively abundant, and the weak demand is still the key factor, and the copper price is not expected to win in the short term.