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[copper market today] crude oil falls, copper in Shanghai is affected, spot consumption of copper in Shanghai has not improved significantly.
Jul 14,2020 17:05CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

A brief comment on SMM

During the day, copper in Shanghai fell, mainly due to the impact of the linkage of international oil prices. Saudi Arabia proposed that OPEC+ discuss cutting production from 9.6 million b / d to 7.7 million b / d at its meeting on July 15, as concerns about the contradiction between supply and demand stimulated the market as the epidemic continued to affect the recovery of crude oil demand. Us oil and cloth oil fell today, dragging down copper prices. In addition, Sino-US relations continue to be strained, market preference has been suppressed, and the upward trend of copper prices has been hampered. Today, the position of 09 contract has exceeded 08 contract, and the position of Shanghai Copper has been changed for a month. Today, the Shanghai Copper 09 contract opened at 52470 yuan / ton in the morning. after the opening, the copper price fell rapidly, exploring an intraday low of 51800 yuan / ton. then the bulls gradually increased the copper price upward, and the center of gravity stabilized at 52190 yuan / ton until the close before noon. Opening in the afternoon, the bulls made a profit and left the market, the market declined, and the copper price fell to 51890 yuan / ton. At this time, the bulls increased their positions and pulled up the copper price for a short time. Near the end of the day, the bulls reduced positions fluctuated and finally closed at 52190 yuan, down 120 yuan, down 0.23%. During the day, 09 contracts increased their positions by 3033 to 111000, mainly as short positions increased, with trading volume reduced by 35000 to 128000; 08 contracts opened at 52490 yuan / ton in the morning, closed at 52210 yuan / ton, and reduced positions by 6828 to 108000 in the day. Long and short parties accelerated the reduction of their positions, and the trading volume decreased by 82000 to 190000. With delivery approaching, the monthly contract of Shanghai Copper today reduced its position by another 3540 to 4445. At present, Shanghai Copper has a contango structure, and the price difference between 08 contract and 07 contract fluctuates around 30 yuan / ton.

Today, Shanghai copper negative, KDJ opening down expansion, but below is still far away from all moving averages, the uplink channel has not changed. Wait for the outer disk guidelines at night to test whether the bulls can continue to make efforts to support copper prices to continue to rise.

Spot market

Today, the spot price of electrolytic copper in Shanghai is 30 yuan / ton for the current month's contract, the transaction price of copper is 52050 yuan / ton ~ 52150 yuan / ton, and the transaction price of copper is 52070 yuan / ton ~ 52170 yuan / ton. Some bullish positions left the market, and the high level of copper in Shanghai fell back to 52000 yuan / ton, a decline of about 800yuan / ton. Approaching delivery month, speculators favor low-price sources of goods. The morning market quotes flat water to rise water 20 yuan / ton, the market stops to wait and see, buying is less, after 10:30, the price difference changes sharply every other month, and the price difference returns, which is higher than 10: 20 yuan / ton in recent months. The low-price supply is favored by the market to buy actively, after the flat water copper quotation rises 10 yuan / ton, the good copper quotation rises 20ml 30 yuan / ton; Wet copper is abundant, consumption has not improved significantly, the price of the holder is enthusiastic, and the price is lower than yesterday, from 60 RMB 70 yuan / ton to 90 yuan / ton. In the face of drastic changes in price spreads, traders are cautious in trading, mainly buying bargains. During the week, the performance downstream of sharp rises and falls is still cautious and the activity is low. Tomorrow, we will pay attention to the guidelines for spot quotations due to the changes in the price difference between two months. Today, some consignors have quoted prices in August, and the basic performance remains stable from flat water to rising water 30 yuan / ton.

Today, the spot price of electrolytic copper in Guangdong province rose 40 yuan / ton to the monthly contract, with an average price of 25 yuan / ton, while the average price of wet copper paste fell 40 yuan / ton in 10 ~ flat water. The average price of electrolytic copper is 52095 yuan / ton, and the average price of wet process copper is 52050 yuan / ton. Spot market: Guangdong inventories soared for two consecutive days, increasing by more than 7400 tons, or 41 per cent, to 25500 tons in just two days. Affected by this, the holder continued to adjust the price for shipment. by 11:00, flat copper had dropped to 20,30 yuan / ton, and there was even a discount on wet-process copper, while good copper remained at 100 yuan / ton due to delivery reasons. In terms of market trading, due to a certain correction in copper prices today, and rising water is lower, some downstream began to replenish, but the purchase volume is still limited; and traders affected by the approaching delivery, trading is not active. Overall, the trading atmosphere in the market today is better than yesterday, but it has not yet returned to normal levels. Finally, it is reported that copper imports are still arriving in Hong Kong this week, and stocks are still rising.

Yangshan copper

Today's warehouse receipt is quoted at US $105 / ton, the average price is the same as the previous day; the bill of lading is quoted at US $80,000,000 / ton, the average price is the same as the previous day, QP August. LME0-3 raised water by US $9 / ton, and the import loss was around 120 yuan / ton.

After a brief opening of the price comparison, today's foreign trade market transactions returned to a deserted state. The willingness of shippers to ship has increased, and the number of offers has also increased significantly. Most traders are flat at yesterday's offer level, some of which are lower than before. at present, the mainstream fire quotes arriving in Hong Kong at the end of July are about 95 US dollars / ton, but there is more room for bargaining. However, the price comparison directly affects the import demand, and there is still a large gap between the buyer's psychological expected price and the market quotation, so it is difficult to see the transaction. The transaction of warehouse receipts is limited and the price remains unchanged for the time being.

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 90 yuan / ton; good copper bill of lading is 94 US dollars / ton, mainstream fire method 90 US dollars / ton, wet method 80 US dollars / ton.

Inventory

LME copper stocks today were 168225 tonnes, down 8125 tonnes, or 4.61 per cent, from the previous day.

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