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[copper Market Today] the Federal Reserve's FOMC meeting is about to boost market risk appetite to boost the high level of copper in Shanghai.
Jul 29,2020 16:25CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Introduction to this article: today, the copper in Shanghai is running at a high level. Risk appetite was boosted mainly because the Fed's FOMC meeting was about to begin and the market was betting on more economic stimulus. In addition, the Federal Reserve said it would extend seven emergency lending facilities until the end of the year, the implementation of strong fiscal and monetary stimulus policies in the United States kept the optimistic tone unchanged; in addition, the API crude oil inventory announced in the United States last night was much lower than the previous value, oil prices were boosted, and copper prices rose.

A brief comment on SMM

Today, the copper in Shanghai is running at a high level. Risk appetite was boosted mainly because the Fed's FOMC meeting was about to begin and the market was betting on more economic stimulus. In addition, the Federal Reserve said it would extend seven emergency lending facilities until the end of the year, the implementation of strong fiscal and monetary stimulus policies in the United States kept the optimistic tone unchanged; in addition, the API crude oil inventory announced in the United States last night was much lower than the previous value, oil prices were boosted, and copper prices rose. Today, the main force of Shanghai copper opened at 51770 yuan / ton in the morning, and the opening was pressurized by a lot of flat copper prices. Shanghai copper concussion fell to explore an intraday low of 51640 yuan / ton. With bulls increasing positions one after another, the center of gravity of Shanghai copper fluctuated in a narrow range above the daily moving average until it closed at 51710 yuan / ton at noon. At the opening of the afternoon, bulls entered the market to pull up copper prices to climb the intraday high of 51990 yuan / ton. Bulls made profits from this high position and superimposed short positions, and the market declined, falling to 51790 yuan / ton. Near the end of the day, the center of gravity of copper in Shanghai rose slightly, and finally closed at 51880 yuan / ton, up 180 yuan / ton, up 0.35%. Today, the main daily position of Shanghai Copper increased by 5412 to 120000, mainly by bulls; trading volume decreased by 40, 000 to 127000. 08 during the contract day, positions were reduced by 5204 to 61000, mainly by short positions, while trading volume decreased by 7000 to 33000.

Today, the copper in Shanghai is closed, and the opening of KDJ has been reined in. In the evening, we will wait for the guidance of the outer disk to test whether the copper in Shanghai can rush again.

Spot market

Today, the spot price of electrolytic copper in Shanghai is 30 yuan / ton to 90 yuan / ton in the current month, the transaction price of copper in Pingshui is 51770 yuan / ton ~ 51820 yuan / ton, and the transaction price of copper in Shengshui is 51820 yuan / ton ~ 51870 yuan / ton. Shanghai copper continued to withstand 52000 yuan / ton of pressure for many days under the shock, around 51700 yuan / ton to continue the consolidation state. The next month ticket quotation market share has been the majority, the spot continues yesterday's quotation, level copper quotation rises about 40 yuan / ton, good copper quotation rises 90 yuan / ton, the overall market transaction is weak, flat copper more than rising water 30 yuan 40 yuan / ton to have a deal, good copper price space is limited, transaction maintenance 80 million 90 yuan / ton, market reaction is cautious, wet copper transaction price is also stable at 60 ~ 40 yuan discount. Demand is weak near the end of the month, but the low supply of good copper makes the overall rising water not continue to go down, the target price for traders to receive goods is on the low side, and it is difficult to reach an agreement with the holders for the time being, and the quotation is basically in a state of stalemate in recent days.

Today, the spot price of electrolytic copper in Guangdong province quoted a discount of 80-0 for the current month's contract, with an average price drop of 30 yuan / ton, while the wet copper discount was 140-130, with an average price drop of 40 yuan / ton. The average price of electrolytic copper is 51680 yuan / ton, while that of wet copper is 51585 yuan / ton. Spot market: although inventories in Guangdong are still increasing today, the growth rate has slowed significantly compared with before, and copper prices have fallen slightly today, and the theoretical rising water will stop falling; but downstream consumption is really weak. Several copper poles are scheduled to stop production and overhaul near the end of the month, and production is not expected to resume until next Monday. Affected by this, the bearer took the initiative to reduce the price in the morning trading, and kept lowering the price of the goods during the day. By 11:00, good copper had fallen to 0 yuan / ton, flat copper to-80 yuan / ton, and wet-process copper to-130 yuan / ton. It is worth noting that with the expansion of the discount, traders began to receive goods to make warehouse receipts, yesterday's warehouse receipts have increased by 1500 tons, it is estimated that more warehouse receipts will be made in the next few days. In addition, recently, there are also a lot of non-standard copper into the market, which is another important reason for the continued decline in flat copper prices. Taken together, we think that the rising water may continue to decline slightly in the next two days, but the rate of decline is limited.

Yangshan copper

Today's warehouse receipt quotation is $86-96 / ton, the average price is $1 / ton lower than the previous day, and the bill of lading is $70-83 / ton, the average price is $1.50 / ton lower than the previous day, QP August. The LME0-3 litre water is 13 US dollars / ton, and the import loss is around 300 yuan / ton.

Today, the performance of the foreign trade market is desolate, the market quotations and enquiries are very few, and we have not heard of the transaction in the morning market. There are few quotations from traders, and they hold a bill of lading to Hong Kong for wait-and-see status. The price of bill of lading in Hong Kong has continued to decline in recent months. at present, the mainstream fire bill of lading is quoted at about US $80 / ton, while the buyer's demand remains light, and the transaction price is expected to be even lower in order to wait for the premium to fall further. Yesterday, some traders shipped the bill of lading to Hong Kong at a low price, which was not a comprehensive market behavior. The quantity of unilateral offer in the warehouse is limited, and the price weakens with it.

At present, the transaction price of good copper warehouse receipt is around 96 US dollars / ton, 92 US dollars / ton for mainstream fire method, 86 yuan / ton for wet method, 83 US dollars / ton for good copper bill of lading, 78 US dollars / ton for mainstream fire method and 70 US dollars / ton for wet method.

Inventory

LME copper stocks today are 131900 tons, down 2125 tons, or 1.59 per cent, from the previous day.

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