[brief comment on SMM copper futures] the collapse of the oil market has led to a renewed market panic in Shanghai, where the main force of copper has been linked to a low opening.

SMM, 22 April:

Today, the Shanghai copper main contract short opened at 41200 yuan / ton, the opening short, copper prices were suppressed straight down pierced 41000 yuan / ton mark, briefly rebounded again fell to the day's lowest point of 40350 yuan / ton, down nearly 1,000 yuan. At this time short on the low to leave the market, copper prices rebounded and around 40700 yuan / ton position horizontal finishing, midday closed at 41200 yuan / ton. At the start of trading in the afternoon, the price of copper rose above the daily average line, followed by a fluctuating rise in copper prices, closing at 41090 yuan / ton, down 620 yuan / ton, or 1.49%. Today, the main force of copper in Shanghai increased its position by 6707 hands to 122000 hands, mainly by short positions, while trading volume increased by 22000 hands to 140000 hands. The daily position of the Shanghai Copper Index increased by 12000 hands to 337000 hands, mainly by short positions, and trading volume increased by 45000 hands to 305000 hands. Shanghai Copper 2005 contract day reduction of 7725 to 73000 hands, mainly for the long reduction. Within days, Shanghai copper jumped short again, mainly due to the oil market panic transmitted to the global capital markets. The collapse in oil prices has spread over the long term. WTI6's monthly contracts were also affected after falling into negative territory for the first time in WTI5's history, tumbling 70 per cent in intraday trading on Tuesday. Oil prices also fell sharply, falling more than 15 per cent at one point, refreshing a 21-year low. Markets are more pessimistic about the prospects for the global economy. Fundamentally, tight copper supply continues to support copper prices, with Antofagasta, a Chilean miner, announcing that it will cut its 2020 copper production target and cut its capital expenditure plan as a result of the outbreak. Shanghai copper closed down today, MACD Hongzhu continued to shrink, the top pressure 5, 10, 40 day moving average. After that, we will focus on whether the bulls can continue to work hard at the low level to support the rise in copper prices.