Copper is brewing a new rally The market may start early

Industry News:

1.
The Solid Waste and Chemical Management Technology Center of the Ministry of Ecology and Environment of China issued the first batch of metal scrap import quotas in 2020 on Monday (23rd), of which 270,000 tons of high-grade copper scrap and 275,000 tons of aluminum scrap were approved, a total of less than 550,000 tons
.
China plans to reduce scrap metal imports classified as solid waste to zero
by the end of 2020.
Scrap metal is currently classified as solid waste, but adjustments will be made by the second quarter of 2020 at the latest, when high-grade copper and aluminium scrap that meet the new standards will no longer be classified as waste, allowing unlimited imports, but enterprises will now need to obtain quotas from the Ministry of Ecology and Environment to import scrap.

2.
China's copper raw materials negotiation group CSPT will hold a meeting in Fuzhou on December 26, 2019, and plan to discuss the production reduction plan, production reduction and production reduction time of copper smelting enterprises in 2020; In this way, it is hoped that the pressure of domestic sulfuric acid stocks and the operating pressure
of smelting enterprises can be alleviated.
The China Copper Raw Materials Negotiating Group CSPT currently has 13 copper enterprise members, with a total refining capacity of 7.
5 million tons, accounting for about 68% of the country's total refining capacity, and the total amount of imported copper concentrate accounts for 82%
of the country's copper concentrate imports.
The Panel made a joint reduction in 2007 by 10-15 per cent
.

According to market sources, Chinese smelters are discussing joint production reductions, and the potential operational risks of enterprises have increased in the context of low profits in the current smelting industry, and rumors of bankruptcy of a smelter in Shandong at the end of the year can also be verified
.
In today's profit environment, the joint production cut has credibility, and we will pay close attention to the relevant news
.
The global explicit inventory of refined copper is still at a low level, and the overseas LME continues to fall, but the domestic social inventory accumulated slightly last week, and the seasonal accumulation may gradually begin
.
Catalyzed by the news of production cuts, copper prices are brewing a new wave of rally, and the market may start ahead of schedule, seizing the opportunity
to open long positions on dips.