Metals News
[agency Review] Chilean strike supply worries that copper prices are on the strong side
Jun 26,2019
Source:Wenhua Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM News: yesterday's Shanghai copper contract closing price of 47090 yuan / ton, an increase of 0.73 per cent. The night closing price was 47360 yuan per ton, up 0.57 per cent. LME closed up 0.85 per cent at $6015.5 a tonne.

Macro News: in terms of preferential fiscal and tax policies, the tax cuts and fees of 2 trillion yuan this year and the continuous increase in tax preferential policies have injected endogenous impetus into the real economy, and small and medium-sized enterprises have received substantial benefits. Starting from July 1, the second wave of 300 billion yuan fee reduction this year will officially fall to the ground.

Industry news: Kennecott Exploration, a subsidiary of Rio Tinto, a diversified miner, has launched drilling for the Madison copper and gold project in Butte, Montana, owned by (Broadway Gold Mining), a Canadian gold miner.

Today's strategy: overnight copper prices rose sharply, Shanghai copper stable station of more than 47000 yuan / ton, and Lun copper also steadily broke through the US $6000 / ton barrier. The strike at Chilean National Copper Company's copper mine has not been properly resolved, which is expected to reduce supply in the copper market by about 10000 tons, giving copper prices some momentum to rise. Superimposed G20 summit is coming, in the good news release of the expected trend of copper prices on the strong side.

Options strategy: the strike in Chile triggered supply concerns, giving copper some momentum to rise. Superimposed G20 summit is coming, copper prices are strong under the expectations of the release of good news, and the trend strategy continues to buy call options; the implied volatility of options currently maintains a volatile pattern, and the implied volatility of the main CU1908 dropped slightly yesterday, and the volatility strategy is recommended to wait and see for the time being.

(source: Meerya Futures)

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