[brief review of SMM copper futures] the price index in April was not as expected, superimposed fundamentals and bad news, the main force of Shanghai copper went down and went back to level 43000.

SMM, 12 May:

Today, the main force of copper in Shanghai opened as low as 43170 yuan / ton in the morning. After the opening, the empty level pushed up the price of copper to a daily high of 43450 yuan / ton. However, the rising momentum is insufficient, copper prices fell back about 100 yuan / ton, before the close of copper prices fluctuated in the range of 43270-43450 yuan / ton, closed at 43330 yuan / ton at noon. The reduction of long positions in the afternoon led to a drop in copper prices to around 43100 yuan / ton. Near the end of the day, short positions pressed copper prices, closing at 43040 yuan / ton, the lowest point of the day, down 620 yuan / ton, down 1.42%. The daily position of the main force of Shanghai Copper decreased by 1258 hands to 115000 hands, mainly for the reduction of long positions, and the trading volume increased by 6736 hands to 80000 hands. Shanghai copper contract day reduction of more than 7100 hands, to 18000 hands, the monthly price spread from yesterday's 210 yuan further widened to about 250 yuan; 07, 08 contracts to increase positions nearly 10,000 hands. Today, China's CPI and PPI data were released in April, recording 3.3% and-3.1% respectively, both lower than expected. PPI data reflect that the prices of domestic industrial products continue to decline due to the impact of the epidemic and the continued decline in international commodity prices. In addition, the Chilean National Mining Association said today that copper demand will fall by 3.5%-4% as the new crown epidemic hits the global economy. The reduction in copper supply is not enough to offset the decline in demand, and the copper market is expected to have a supply surplus of 200000 tons this year. The news caused the bulls to leave the market for a wait-and-see situation, and copper prices fell as a result. Today, the main force of Shanghai copper fell, the KDJ three-line opening closed, the 5-day moving average changed from the support level to the upper pressure level. Test whether Shanghai copper can hold the 43000 yuan / ton barrier.