[brief Review of SMM Copper Futures] Caixin PMI data hit a record high in June, and the main force of Shanghai Copper rose sharply to 49500.

Published: Jul 01, 2020 15:55 (GMT+8)

SMM, July 1:

Today, the main force of Shanghai copper opened high at 48940 yuan / ton in the morning. After the opening, the bulls gradually increased their positions and pulled the copper price up rapidly to 49280 yuan / ton. At this time, the long and short forces were deadlocked. After the copper price was slightly sorted out around 49210 yuan / position, the copper price fluctuated upward again until it closed at 49320 yuan / ton before noon. After opening in the afternoon, the bulls reduced their positions, and the market quickly fell to 49170 yuan / ton. At this time, the price of copper in Kongping continued to rise, exploring a daily high of 49380 yuan / ton, and finally closed at 49350 yuan / ton, up 790 yuan / ton, or 1.63%. Today, the main contract of Shanghai Copper increased its positions by 4888 to 129000, mainly by long positions; the trading volume increased by 46000 to 152000; and the Shanghai Copper 07 contract reduced its positions by 6189 to 52000, mainly by short positions. Trading volume fell by 12000 to 29,000. 09 contract increased significantly, up to 5234 in a day. During the day, the main force of copper in Shanghai continued to rise, mainly due to continued loosening of economic policy. Today, the people's Bank of China once again cut the re-lending and rediscount interest rates. After the cut of 0.25 percentage points, the interest rates of three-month, six-month and one-year agricultural re-loans and small loans were 1.95%, 2.15% and 2.25% respectively, and the rediscount rate was reduced by 0.25 percentage points to 2%. Major good news for the real economy and capital markets effectively boosted market confidence and pushed copper prices up sharply. In addition, the Caixin PMI announced today recorded 51.2, an increase of 0.5% over the previous month and the highest since December 2019. The manufacturing PMI index has been in the expansion range for two months in a row, reflecting that China's economic recovery growth has formed a good trend, and the manufacturing sector is obviously on the rise. Investor sentiment continues to be optimistic, supporting the upward trend in copper prices. At present, the price of copper in Shanghai has closed, the price of copper has jumped away from the lower moving average, and the KDJ opening continues to expand. From a technical point of view, it is good for the price of copper. In the evening, wait for the outer disk guidelines to test whether Shanghai Copper can break through the 49500 yuan / ton mark.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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[brief Review of SMM Copper Futures] Caixin PMI data hit a record high in June, and the main force of Shanghai Copper rose sharply to 49500. - Shanghai Metals Market (SMM)