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[copper Market Today] Precious Metals Deep callback in Shanghai Copper High opening low going Shanghai Copper spot Market transaction stalemate
Jul 28,2020 17:39CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Against the backdrop of tense international relations, severe novel coronavirus epidemic and market expectations that the Federal Reserve will maintain long-term easing, the US dollar is under full pressure, precious metals such as gold and silver have soared to record highs, and copper prices have also been boosted. Opened high and broke the 52000 mark in the morning. There was a deep correction in gold and silver during the day, and copper prices fell under pressure. Fundamentally, although the strike at the Centinela copper mine in Antofagasta, Chile has been avoided, the tight supply pattern at the mine side has not changed the market, and copper prices are still supported.

A brief comment on SMM

Against the backdrop of tense international relations, severe novel coronavirus epidemic and market expectations that the Federal Reserve will remain loose for a long time, the US dollar is under full pressure, with precious metals such as gold and silver soaring to record highs, and copper prices are also boosted, opening high and breaking the 52000 mark in the morning. There was a deep correction in gold and silver during the day, and copper prices fell under pressure. Fundamentally, although the strike at the Centinela copper mine in Antofagasta, Chile has been avoided, the tight supply pattern at the mine side has not changed the market, and copper prices are still supported. Today, the main force of copper in Shanghai opened at 51700 yuan / ton in the morning. after the opening, the bulls entered the market to pull up the copper price above the 52000 mark, to the highest point of 52250 yuan / ton in the day, but the market fell rapidly under the short selling pressure, and the center of gravity stabilized at 51900 yuan / ton after falling about 400 yuan / ton. at this time, the copper price fell again, closing at 51640 yuan / ton in midday trading. Copper prices opened in the afternoon to explore the intraday low of 51360 yuan / ton, near the end of the day, the center of gravity of copper in Shanghai slightly rose to 51570 yuan / ton, and finally closed at 51540 yuan / ton, down 150 yuan / ton, down 0.29%. Today, the main daily position of Shanghai Copper increased by 1788 to 115000, mainly for short positions, and trading volume increased by 15000 to 167000. 08 during the contract day, positions were reduced by 3314 to 66000, mainly by long positions, while trading volume decreased by 9000 to 40, 000.

Today, Shanghai Copper Yang, KDJ opening convergence, but the top is still under pressure 5-day, 10-day moving average. Wait for the guidance of the outer disk at night to test whether Shanghai Copper can reach the 52000 mark again.

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, 51900 yuan / ton to 52040 yuan / ton for Pingshui copper, and 51950 yuan / ton to 52080 yuan / ton for Shengshui copper. Copper in Shanghai opened high and went low, with 52000 yuan / ton under pressure falling below 51700 yuan / ton. The market stops and wait and see, the holder continues to quote yesterday, and the price trend remains the same. the price of good copper in the morning market is 80 yuan / ton, and the monthly ticket price of flat copper is around 50 yuan / ton. the monthly ticket price of flat copper is 30-40 yuan / ton, and the transaction is still stuck in a stalemate. Traders prefer to raise water by 30 yuan / ton, and the transaction is slightly improved, and the supply of good copper is still tight, maintaining in the range of 80 yuan / ton, the price of rising water is still in the range of 100 yuan / ton, the price of good copper is still tight, and the supply of good copper is still tight, which is maintained in the range of 100 yuan / ton of rising water. Wet copper to maintain yesterday's discount of 60 to 20 yuan / ton, the transaction is general, there are great differences between brands, coupled with bill factors lead to serious differentiation of wet copper price difference. Today's demand for monthly tickets has obviously lost momentum, the market has been mostly quoted for next month's tickets, the market price reduction is limited, traders are cautious in receiving goods, and the transaction shows a stalemate.

Today, the spot price of electrolytic copper in Guangdong province quoted a discount of 50-30 per month for the contract, with an average price of 20 yuan / ton, while wet copper quoted a discount of 100-90, with an average price of 20 yuan / ton. The average price of electrolytic copper is 51995 yuan / ton, and the average price of wet copper is 51910 yuan / ton. Spot market: Guangdong inventory has increased significantly for five consecutive days and is now approaching the 40,000 mark. In just one week, inventory has increased by more than 9,000 tons, an increase of 31%. Coupled with the copper price rising again today, making the already weak downstream demand even worse, so the holder can only continue to reduce the rise of water shipments, but even so, today's transaction is still quiet. By 11:00, good copper fell to 20 pound 30 yuan / ton, flat copper to-50 pound 60 yuan / ton, and wet-process copper to-100 pound 90 yuan / ton. In addition, as far as we know, a medium-sized copper rod factory is about to be overhauled, and downstream consumption is expected to fall further, and rising water is expected to fall further.

Yangshan copper

Today's warehouse receipt quotation is US $87-97 / ton, the average price is US $1 / ton lower than the previous day; the bill of lading is quoted at US $72-84 / ton, the average price is US $1 / ton lower than the previous day, QP August. The LME0-3 litre water is 6 US dollars / ton, and the import loss is around 300 yuan / ton.

Today, the trading atmosphere of the imported copper market continues the deserted state before, and the activity of both buyers and sellers is limited. With the shipping date approaching, traders once again lowered the price of the bill of lading arriving in Hong Kong in recent months, but the buyer's expected premium still had room for downside, and the counter-offer was about US $10 lower than the quotation, breaking through the seller's cost line downwards, the price difference between the two sides was difficult to smooth out, and the transaction continued to stalemate. At present, the trading price of copper in Japan is at the first line of US $80 / ton. Warehouse receipt quotation continues to decline, and the mainstream fire warehouse receipt quotation is around 95 US dollars / ton, with few transactions.

At present, the transaction price of good copper warehouse receipt is around 97 US dollars / ton, 93 US dollars / ton for mainstream fire method and 87 yuan / ton for wet method; 84 US dollars / ton for good copper bill of lading, 80 US dollars / ton for mainstream fire method and 72 US dollars / ton for wet method.

Inventory

LME copper stocks today were 134025 tonnes, down 4000 tonnes, or 2.9 per cent, from the previous day.

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