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[copper market today] tension between China and the United States continues to ferment copper pullback buying in Shanghai to improve spot copper rising water in Shanghai to maintain stability.
Jul 23,2020 17:18CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Shanghai Copper fell today, mainly due to the escalation of tensions between China and the United States to deal a blow to market optimism. Last night, under the influence of the US political provocation demanding the closure of the Chinese consulate in Houston, the copper night market in Shanghai opened low and the center of gravity shifted somewhat. Tensions between China and the United States continued to grow, investors were unnerved by new diplomatic disputes, and risk aversion rebounded to weigh on copper prices.

A brief comment on SMM

Copper in Shanghai fell today, mainly as escalating tensions between China and the United States hit market optimism. Last night, under the influence of the US political provocation demanding the closure of the Chinese consulate in Houston, the copper night market in Shanghai opened low and the center of gravity shifted somewhat. Tensions between China and the United States continued to grow, investors were unnerved by new diplomatic disputes, and risk aversion rebounded to weigh on copper prices. Today, the main force of copper in Shanghai opened at 51950 yuan / ton in the morning. after the opening, the center of gravity of copper price fluctuated narrowly around 51920 yuan / ton position, and then declined due to more flat entry into the market, and explored the intraday low of 51590 yuan / ton position. Copper prices rebounded at a low level, with the center of gravity rising about 100 yuan / ton to close at 51750 yuan / ton at noon. Opening in the afternoon, Shanghai Copper was operating smoothly near the 51710 yuan / ton first line. Near the end of the day, bullish copper prices rose to close at 51970 yuan / ton, down 460 yuan / ton today, or 0.88%. During the day, 09 contracts reduced positions by 2190 to 118000, mainly by long positions, while trading volume increased by 23000 to 172000. 08 during the contract day, positions were reduced by 2763 to 75000, mainly by long positions, while trading volume decreased by 19000 to 72000.

Today, Shanghai copper negative, KDJ opening expansion, but there are still 5, 10-day moving average adhesion to the bottom. Wait for the outer disk guidelines at night to test whether the bulls can push again to support copper prices to continue to rise and stand firm at the 52000 mark.

Spot market

Today, the spot price of electrolytic copper in Shanghai quoted a price of 30 yuan / ton to 100 yuan / ton for that month's contract, 51680 yuan / ton to 51990 yuan / ton for Pingshui copper, and 51730 yuan / ton to 52050 yuan / ton for Shengshui copper. Under the influence of the tense situation in Sino-US relations, all the non-ferrous basic metals turned green, the copper fell sharply overnight, and the copper in Shanghai fell back to below 52000 yuan / ton to as low as 51700 yuan / ton. The holder basically continues yesterday's quotation style, good copper water 80 ~ 100 yuan / ton, Pingshui copper water 30 yuan / ton, the market holds a cautious wait-and-see attitude; Entering the second trading session, copper prices fell, and the market was willing to buy flat copper with a rising water of 20 yuan / ton. After the transaction was significantly improved, the holders held firm quotations. Flat copper was concentrated in rising water 30 to rising water 40 yuan / ton, and good copper was maintained at about 100 yuan / ton, but the transaction was inferior to flat copper. After the copper price fell, the wet price narrowed slightly and remained around 50 yuan / ton. Copper prices fell after some downstream bargain replenishment, traders are mostly long single users, mainly to cut prices, rising water temporarily stable during the pullback.

Today, the spot price of electrolytic copper in Guangdong Province is up 70 yuan against that month's contract, the average price is down 15 yuan / ton; the wet copper price is 40 yuan discount to 30% discount, the average price is down 10 yuan / ton. The average price of electrolytic copper is 51945 yuan / ton, and the average price of wet process copper is 51875 yuan / ton. Spot market: under the influence of geopolitics and other factors, copper prices fell sharply today, which stimulated the consignors to still want to sell at a straight price in early trading (flat copper was at 30 yuan / ton), but was constrained by weak consumption downstream and inventory continued to increase. The market trading atmosphere was cold, and the cardholders could only reduce the water for shipment. After 10:00, the flat copper in the market had dropped to 0 yuan / ton, but the willingness to continue to reduce the price was not strong. Some buyers have also begun to replenish goods at bargain prices, and the trading atmosphere in the market has improved slightly. The price of good copper is kept at a high level of 70 yuan / ton due to lack of goods. Overall, the fall in copper prices failed to boost the trading atmosphere in the market, with only a small number of traders restocking bargains.

Yangshan copper

Today's warehouse receipt quotation is US $88 per ton, the average price is US $2 / ton lower than the previous day, and the bill of lading is quoted at US $73 per tonne, with an average price reduction of US $2 / ton compared with the previous day, QP August. LME0-3 raised water by US $17 / ton, and the import loss was around 400 yuan / ton.

Today, import losses have expanded again, the foreign trade market has almost fallen into a state of silence, market quotations and enquiries have relatively decreased, and turnover is very light. For the bill of lading arriving in Hong Kong at the end of July and early August, the market will to accept the goods is very low. at present, the transaction price of the second-card bill of lading has fallen to about US $85 / ton, the mainstream fire method has dropped to about US $80 / ton, and a few counter-offers are even lower. Warehouse receipt quotation has also been slightly reduced, but there is no transaction. Judging from the recent performance of the foreign trade market, affected by the price comparison, the demand in the foreign trade market has weakened obviously, and the transaction price has been declining all the way. LME back structure rapidly expanded to 17 US dollars / ton, more heavy holder change pressure, which is not conducive to the premium upward.

At present, the transaction price of good copper warehouse receipt is around 98 US dollars / ton, 94 US dollars / ton by mainstream fire method, 88 yuan / ton by wet method, 85 US dollars / ton by good copper bill of lading, 80 US dollars / ton by mainstream fire method and 73 US dollars / ton by wet method.

Inventory

Today, LME copper stocks are 143800 tons, down 1250 tons, or 0.86%, from the previous day.

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