Downstream consumption is still strong Shanghai copper prices continue to fluctuate at a high level

In terms of the market, today's domestic spot copper prices stabilized, Yangtze River non-ferrous metal network 1# copper price was reported at 44010 yuan / ton, down 40 yuan, premium 160-liter 220; Guangdong spot 1# copper price was reported at 44070 yuan / ton, down 20 yuan; Yangtze River spot 1# copper price 44080 yuan / ton, down 50 yuan, premium 240-liter 260; Shanghai spot 1# copper price was 44035 yuan / ton, down 25 yuan
.

Industry News:

1.
It is reported that once copper prices recover and restrictions imposed by the new crown virus are relaxed, Nevada Copper's pumpkin hollow underground copper mine expansion project will restart
.
Previously, due to the epidemic, Nevada Copper temporarily suspended production activities of the Pumpkin Hollow project for at least 6 weeks, which will be adjusted
according to government measures.
The Pumpkin Hollow underground mine, which commenced production in December 2019, is expected to produce 6.
5 million pounds of copper equivalent per year at a total sustaining cost of $1.
86/lb
.

2.
Customs data show that the import volume of scrap copper in April was 80,597 physical tons, a decrease of 1.
76% month-on-month and 56.
24% year-on-year; From January to April, the cumulative import of 305,680 physical tons was 305,680, a cumulative decrease of 44.
37%
year-on-year.

3.
Ecuador will gradually restart mining activities this week after the government approved new safety protocols for the transportation of minerals and allowed workers to return to
mines during the coronavirus pandemic, an official said over the weekend.
Government data show that mining activity in Ecuador has decreased by 60%
since mid-March.
Ecuador, an oil-producing country facing a debt crisis, is struggling to diversify its economy and government revenue sources by developing its mining industry, while struggling to repay its heavy debt burden
.
Benalcazar said the country's two largest miners, Fruta del Norte and Mirador, were preparing to gradually restart operations, while smaller gold miners in the south of the country had begun shipping ore, which had been banned since the quarantine began
.

Fundamental operation: 1) Last week, refined copper social stocks and bonded zone inventories continued to decline, LME delivered large positions, and the differentiation of internal and external inventories increased; 2) The price difference of refined waste continues to widen, and the cost performance of copper scrap decreases; 3) Weekly TC temporarily stabilized, Peru gradually resumed production, whether the disturbance at the mine end can be transmitted to the smelting industry, it is still necessary to pay attention to the shipment situation
in the next two months.

Copper spot premium rose during the week, Yangshan copper port premium remained high, downstream consumption is still strong, copper concentrate TC rebounded slightly, smelting production in the past two months remained stable, but there is still the possibility of being disturbed by ore supply in the future, copper fundamentals are not weak
.
The two sessions are approaching, the expectation of policy makes the overall strength of industrial products, the current Shanghai copper main force 44000 area is still under pressure, the previous day's breakthrough after a rapid decline, the plate may need practical policy benefits to form an effective breakthrough, intraday prices or continue to fluctuate
high.