Copper futures remain subject to macro risks and market sentiment in the short term

WHO: Confirmed cases of new coronavirus pneumonia outside China rise to 210644
.
On the 21st, the Chinese vaccine officially entered the clinical trial stage
.
On Saturday, the United States revealed that it was discussing an economic stimulus package to deal with the impact of the epidemic, which would be more than $2 trillion
.
On Friday night, market sentiment was once again pessimistic, and non-ferrous metals continued to weaken
.

Industry News:

1.
Global miner AngloAmerican said on Friday it would reduce the number of employees operating under Chile and other national flags to prevent the spread of the new coronavirus, but added that there would be no substantial disruption
to production.
The company said that the supply chain is currently working well
thanks to working with suppliers.
The company produces copper
in Chile.

2
.
The Central Australian Land Commission has reportedly asked exploration companies to suspend non-core operations in remote communities and indigenous lands in the Northern Territory.
It excludes Newmont's Tamami mine, as well as other mines in operation
.
A CLC spokesman said Newmont employees flew in and out of Perth without crossing Indigenous lands, so their production was not affected
.
Some other isolated, air-to-fly mine operations can continue
.
However, this requirement will affect some exploration companies, particularly in the Tanami, Tennant Creek and Alice Springs areas
.
Other affected businesses include Independent Group, Nova Minerals, Emerson Resources and Brinner Minerals
.

3.
Benefiting from the rapid development of downstream industries such as 5G and new energy vehicles, the demand for lithium battery copper foil will continue to increase
in the future.
Industry institutions predict that by 2025, the global demand for lithium battery copper foil for electric vehicles alone will reach 600,000 tons, and the demand will reach 900,000 tons
in 2030.
At the same time, with the technological breakthrough of domestic copper foil manufacturers in recent years, it is expected to realize the transfer of low-end production capacity to high-end production capacity, and further optimize the supply and demand
of the industry.
Industry analysts said that the current development of the domestic copper foil industry is from quantity to quality, and high-performance differentiated lithium battery copper foil is the future development direction
of the domestic lithium battery copper foil industry.
At present, the domestic electrolytic copper foil product structure is low-end excess, and the high-end is insufficient
.
Therefore, the production of differentiated products with high added value is the core key
to corporate profitability.

From a fundamental point of view, copper has fallen into the effective cost range, domestic inventories may peak, domestic demand is in the stage of stabilization and recovery, the epidemic in South America began to spread to affect the output of some mines, Shanghai copper fundamental performance is not bad, there is still an expectation of a phased rebound after the mood is stable, but the negative impact of the epidemic will make the price center of gravity significantly revised
downward during the year.
At present, fundamentals give way to market sentiment, Shanghai copper has not yet fallen to the bottom of 2015, the current point still has room to fall, high volatility is recommended that ordinary investors temporarily wait and see, buy insurance demanders recommend to control light positions, can choose option strategies to hedge risks
.