[brief Review of SMM Copper Futures] the narrowing of the PPI decline in June indicates that the economic recovery continues to improve and the copper in Shanghai is stronger in the day, pulling up strongly and hitting the 51000 mark.

Published: Jul 9, 2020 16:09

SMM July 9: today, the main force of Shanghai Copper opened at 50210 yuan / ton in the morning, and the bulls increased their positions one after another after the opening, and the disk continued to rise to 50760 yuan / ton, then the center of gravity was briefly adjusted around 50790 yuan / ton, until it closed at 50620 yuan / ton at noon. At the beginning of afternoon trading, copper prices continued to rise, fluctuating higher at 50700 yuan / ton, climbing an intraday high of 50800 yuan / ton, taking profits at the end of the day, copper prices fell somewhat, and finally closed at 50690 yuan / ton, up 1040 yuan / ton, or 2.09%. The intraday 08 contract increased positions by 2766 to 120000, mainly by bulls; trading volume increased by 24000 to 144000; and Shanghai Copper 07 accelerated position reduction by 5910 to 19000, mainly by short positions. At present, the disk still maintains the back structure, and the price difference narrowed to around 20 yuan / ton every other month. Shanghai Copper 09, 10 contracts have varying degrees of increased positions. Today, Shanghai copper continued to rise, mainly due to continued macroeconomic optimism. The National Bureau of Statistics announced today that China's CPI rose 2.5% in June from a year earlier, down 0.1% from a month earlier, down 3.0% from a year earlier, and up 0.4% from a month earlier. The decline in PPI narrowed, indicating that domestic and foreign demand continued to pick up, domestic infrastructure and manufacturing demand gradually recovered, and market expectations for copper demand remained optimistic, boosting market confidence and supporting copper prices. Fundamentals, according to SMM research, China's electrolytic copper production fell 1.42% to 759200 tons month-on-month in June, and domestic electrolytic copper production is expected to fall by 2.79% to 738000 tons in July 2020. Supply tensions remain, providing momentum for rising copper prices. Shanghai copper has been positive for 3 consecutive days, MACD red column continues to expand, and the lower high jump is far from the multiple moving averages, from a technical point of view, bullish copper prices. Wait for the outer disk guidelines at night to test whether the bulls can continue to push upward at the 51000 yuan / ton mark.

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