[brief comment on Copper in SMM] G20 is in a good mood to digest the fluctuation of copper price gap.

SMM July 2: today, Shanghai Copper main contract 1908 opened at 46550 yuan / ton in the morning, after the opening trend all the way stable, the center of gravity maintained at 46640 yuan / ton, until close to the morning close, the market rose slightly to 46690 yuan / ton; After the opening of afternoon trading, the market slid slightly to 46600 yuan / ton, then rose slightly to the highest level of 46750 yuan / ton in the day, and then fell back to the high level, closing down 650yuan / ton, or 1.38 per cent, at 46610 yuan / ton at the end of the day. Today, Shanghai Copper's main contract reduced its position by 1300 to 219000, while trading volume increased by 34000 to 158000. At present, Shanghai Copper's position has moved back significantly, with Shanghai Copper 1909 contract increasing its position by 16000 to 197000 today. Shanghai Copper 1910 contract position increased by 5328 to 65000. The Shanghai Copper Index increased its position by 19000 hands to 609000 hands today, while trading volume increased by 88000 hands to 356000 hands. Today, the capital outflow of Shanghai copper in the non-ferrous plate reached 158 million. Today, the overall performance of Shanghai copper is a long reduction in positions, reflecting that the sentiment of easing Sino-US trade relations at the G20 summit has been gradually digested by the market, superimposed by the fact that the recent European economic data are not as expected, the global economic situation is still weaker, and there is a lack of macro support for copper prices; on fundamentals, as copper consumption enters the off-season, supply-side inventories increase, and fundamentals are still bearish on copper prices. Today, Shanghai copper closed the physical big Yin column, below fell below the Brin middle rail, the KDJ index opened under the expansion, MACD red column continues to shorten. In the evening, wait for the guidance of the outside market to test whether Shanghai Copper can stand at the 46600 yuan / ton gate.

(SMM Song Yao)