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[brief review of SMM copper futures] domestic policies continue to be good, superimposed mine end disturbances caused by frequent supply worries that Shanghai copper has risen above the 40000 mark.
Apr 3,2020 16:29CST
translation
Source:SMM
A brief Review of SMM Copper on April 3
The content below was translated by Tencent automatically for reference.

SMM, 3 April:

Today, the Shanghai copper main contract 2005 opened higher at 39650 yuan / ton in the morning and fell slightly to the lowest level of 39440 yuan / ton in the day after the opening of the session. Subsequently, short positions were reduced one after another, pushing up the copper price slowly until it returned to the opening price, and fell back slightly before the end of the afternoon. In the afternoon, long positions led copper prices to continue to rise, all the way up to 39980 yuan / ton, near the close, copper prices climbed to a daily high of 40120 yuan / ton, before the close slightly fell back, closed at 39930 yuan / ton, up 810 yuan / ton, up 2.07%. Today, the main position decreased by 4127 to 105000, mainly by the reduction of short positions, while the trading volume decreased by 25000 to 77000. Shanghai copper index positions fell 3637 hands to 330000, mainly for short positions to reduce positions; trading volume decreased by 56000 hands to 204000 hands. Within days, Shanghai copper continued to rise. In the morning, the domestic announced that the PMI of Caixin service industry in March was better than expected, and the domestic Ministry of Finance issued a new special bond quota for transportation infrastructure construction in advance. The market confidence was boosted. The spot market of superimposed copper has great expectations for the tax reduction and fee reduction of domestic fiscal policy, and the spot market of electrolytic copper is active, which helps to push the copper price higher. At the same time, due to recent disturbances in copper mines due to the impact of the overseas epidemic, the Peruvian government has extended the state of emergency, the Mexican government has also declared a state of emergency, and Rio Tinto has also declared that cathode copper shipments at its refineries have encountered force majeure, triggering expectations of tighter supply at the mine end as a whole, which is also one of the main factors driving up copper prices. At present, Shanghai copper collection of small columns, MACD red columns are elongated, although the technical side is slightly good, but because there is still 40 days of moving average pressure above, a large surge is still relatively high resistance, wait and see the progress of the global epidemic and the upcoming meeting of OPEC+, will further affect the trend of copper prices, test whether Shanghai copper can stabilize the 40000 mark.

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