August 7 Copper Market Brief Review

Shanghai copper opened higher and weakened during the day, and as of the close of the day, the main 1909 contract of Shanghai copper closed at 45930 (-150, -0.
33%)
.
Shanghai copper macro news is bearish, Sino-US trade frictions have evolved into a trend of financial war, geopolitical fermentation, market risk aversion is high
.

Fundamentally, electrolytic copper demand continues to languish, the recovery of domestic manufacturing is slow, the current Shanghai copper upward momentum is limited, the overall is still weak, and the smelter profit compression and copper concentrate supply is tight, it is expected to continue the narrow range of shock pattern in the near future, the range is 4.
58-46,300, the narrow range superposition trend is not clear, it is recommended to reduce the operation wait-and-see, and the downstream side just needs to stock up
.

The offshore and onshore RMB broke 7 one after another, and the central bank will issue 30 billion yuan central notes to tighten the flow of offshore RMB, and the RMB will stabilize
temporarily.
China's suspension of purchases of U.
S.
agricultural products in response to U.
S.
tax hikes, and the U.
S.
Treasury Department's labeling of China as a currency manipulator, further tensions
.
Copper prices are still fluctuating at a low level, and tolerance for bearish news has increased
.
There is little change in fundamentals, long-term mine tension exists objectively, and mine interference events are constant
.
Opponents of Southern Copper's Tia Maria project held strike action
.
However, the short-term TC downward trend will not lead to a reduction in
production at the smelting end for the time being.
The downstream copper operating rate performance is not satisfactory, and the terminal data has not improved
.
After the catharsis of bearishness, copper prices have rebound demand, and there is a buying value from long-term fundamental considerations, and the operation can be a small number of layouts and long orders
.