[copper market today] tensions between China and the United States have intensified in terms of copper overcast in Shanghai. Spot copper in Shanghai has fallen by the end of the month. Buying weakens at the end of the month.

A brief comment on SMM

Copper fell in Shanghai today, mainly due to further escalation of tensions between China and the United States, as Trump said the United States was preparing to respond forcefully to the legislation of China's Hong Kong version of the national security law. Global investors are worried about trade relations between the two countries, market risk appetite has been suppressed; today's sharp devaluation of the renminbi, the offshore RMB exchange rate hit the 7.17 mark, also put pressure on the copper market; in addition, falling oil prices have also weighed on copper prices. Today, the General Administration of Customs announced that imports of electrolytic copper for refined copper fell in April from a month earlier, as concerns about excess copper supply returned, relatively weakening fundamental support for copper prices. Today, the main force of Shanghai copper opened at 43840 yuan / ton in the morning, then slightly declined and rebounded, and then swayed around 43870 yuan / ton. At the beginning of afternoon trading, copper prices fell, falling from 43750 yuan / ton to the intraday low of 43500 yuan / ton, and finally closed at 43640 yuan / ton, down 160 yuan / ton, or 0.37%. The Shanghai Copper Index increased its positions by 1186 hands in a day to 327000 hands, mainly for short positions.

Shanghai copper overcast today, giving up all yesterday's gains, fell off the 5-day moving average, but there is still a 10-day moving average below. Wait for the outer disk guidelines at night to test whether Shanghai Copper can hold the 43500 yuan / ton mark.

Spot market

Today, the spot price of electrolytic copper in Shanghai quoted a price of 170 yuan to 210 yuan / ton for that month's contract, 44130 yuan / ton to 44200 yuan / ton for Pingshui copper, and 44140 yuan / ton to 44210 yuan / ton for Shengshui copper. The rebound of copper in Shanghai was blocked at the 44000 yuan / ton mark. Invoice share increased significantly today next month, invoice holders have the willingness to cash, next month ticket morning market continues yesterday quoted water 180 ~ 200 yuan / ton, the inquiry atmosphere is light, the transaction is quiet, next month invoice holders take the initiative to lower the shipment, good copper in the water 190 million 200 yuan / ton, flat copper as low as 170 yuan / ton, next month invoice wet copper quotation 140 to 150 yuan / ton. As there is still demand for the supply of monthly tickets in the market, some holders insist on the quotation of some monthly tickets, which is generally 10 RMB20 / ton higher than next month's ticket. Good copper quotes around 210 yuan / ton, and Pingshui copper quotes around 190 yuan / ton. Towards the end of the month, the tide of replacement tickets gradually faded, high-level buying showed hesitation, sellers were still willing to cash at high prices, and trading activity was significantly lower than yesterday, but at present, Shanghai inventory is still in an obvious downward trend, and the room for rising water and downward adjustment is limited.

Today, the spot price of electrolytic copper in Guangdong province rose 220 to 230 for that month's contract, with an average price increase of 20 percent, while wet copper rose 160 to 170, with an average price increase of 10 percent. The average price of electrolytic copper is 44195 yuan / ton, and that of wet copper is 44135 yuan / ton. In the spot market, there were more wet-process copper out of the warehouse yesterday, but the arrival volume was still limited, resulting in a significant decline in inventories, which have fallen to 23400 tons in Guangdong, refreshing a new low for the year. Affected by this, today's holders generally bid for delivery, and the daily rising water shows a fluctuating and high situation. The mainstream transaction price of good copper is 230pm 240 yuan / ton, the mainstream transaction price of flat copper is 220pm 230 yuan / ton, and the mainstream transaction price of wet copper is 170mp 180 yuan / ton. The mainstream transaction price of copper is 180 yuan / tonne, while the mainstream transaction price of flat copper is 230 yuan / ton, while the mainstream transaction price of flat copper is 230 yuan / ton. Overall, low inventory holders generally bid for shipments, the lower reaches are forced to accept high rising water, and the overall transaction is general.

Today, the spot price of electrolytic copper in North China is quoted at 150 yuan / ton ~ 210 yuan / ton for that month's contract, with a transaction price of 43990 yuan / ton ~ 44210 yuan / ton. The rebound of copper in Shanghai was blocked at the 44000 yuan / ton barrier, and there was a trading deviation at the end of the month, and the smelter offered the price voluntarily. If the purchase volume in the lower reaches was large, there was room for price reduction. The market transaction was as low as 150 yuan / ton, and the spot rising water deadlock fell after two days. The average price of rising water was 15 yuan / ton lower than yesterday.

Yangshan copper

Today's warehouse receipt is quoted at US $105 per ton, which remains unchanged from the previous day; the bill of lading is quoted at US $80 per tonne, with an average price of US $3 per tonne lower than the previous day, QP June. The LME0-3 discount is US $34.75 per ton. The import loss is around 120 yuan / ton.

The import price ratio has not improved significantly over the past few days, the market demand is weak, and the turnover is light. On the one hand, the supply of far-month bills of lading continued to flow out, increasing the shipping pressure on the market, and some holders lowered their quotations again in order to close the deal. On the other hand, the buyer's willingness to accept the goods is very low. At present, the transaction price of wet bill of lading in Hong Kong has dropped to about US $80 / ton at the end of June, while the transaction price of mainstream fire bill of lading is in the range of US $85 per ton. There are very few transactions in warehouse receipts, and the quotation remains unchanged. Overall, today's foreign trade market turnover is limited, Yangshan copper premium in light trading further decline.

At present, the transaction price of fire good copper warehouse receipt is around 105 US dollars / ton, mainstream fire method 100 US dollars / ton, wet method 95 US dollars / ton, good copper bill of lading 95 US dollars / ton, mainstream fire 88 US dollars / ton, wet method 80 US dollars / ton.

Inventory

LME copper stocks today were 265375 tonnes, down 5550 tonnes, or 2.05 per cent, from the previous day.

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