[SMM Copper Morning News] the correction of domestic copper prices in Ruiku last Friday is still positive in terms of macro resonance and fundamental resonance.

Published: Jul 6, 2020 08:58

SMM, July 6th

On Friday night, Lun Copper closed at 6015 US dollars / ton, down 1.29%. The trading volume was 12000 lots, and the short position increased by 892 to 298000 lots. The Shanghai Copper 2007 contract closed at 48850 yuan / ton, down 0.59%, and the trading volume was 57000 lots, and the long positions were reduced by 1987 to 120000 lots. There was a correction in copper prices on Friday. Lun Copper recovered its gains in the previous two days and broke the 5-day moving average, while Shanghai Copper closed down more than 400 yuan, mainly due to a large technical setback in the previous period, as well as a more obvious increase in domestic inventories on Friday. On the macro front, the manufacturing PMI index of China and the United States continued to improve in June compared with the previous month, and the added value of non-farm payrolls in the United States reached an all-time high in June, strengthening the expectation of sustained economic improvement; the central bank cut re-lending and rediscount interest rates since July 1, allowing local debt to replenish the capital of small and medium-sized banks, monetary policy sent a signal to amplify credit, and the favorable tone on copper prices remained unchanged. From a fundamental point of view, the increase in domestic inventory this week is mainly due to the influx of imported copper, although the actual consumption has entered the off-season, but the domestic production of electrolytic copper is restricted by raw materials, and the epidemic situation in South America continues to ferment, Codelco announced that the pandemic led to the suspension of the Teniente expansion project, the upstream supply port risk still exists, and there is also support for copper prices. On the spot side, the market inquiry atmosphere warmed up after the market fell, and traders' confidence in raising prices improved, and it is expected that the rising water level will be maintained today. It is estimated that today Lun copper 6000 won 6060 US dollars / ton, Shanghai copper 48800 won 49,100 yuan / ton. It is estimated that the spot water is 10 yuan / ton today-30 yuan / ton.

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[SMM Copper Morning News] the correction of domestic copper prices in Ruiku last Friday is still positive in terms of macro resonance and fundamental resonance. - Shanghai Metals Market (SMM)