Downstream consumption performance is still strong, and Shanghai copper is running at a high level

In the spot market, today's domestic spot copper prices rose, Yangtze River non-ferrous metal network 1# copper price was reported at 44050 yuan / ton, up 780 yuan, premium 140-liter 200; Guangdong spot 1# copper price reported 44090 yuan / ton, up 770 yuan; Yangtze River spot 1# copper price 44130 yuan / ton, up 780 yuan, premium 240-liter 260; Shanghai spot 1# copper price was 44060 yuan / ton, up 800 yuan
.
The market supply is tight, traders take the opportunity to raise prices, and the overall transaction is general, mainly based on just-needed procurement
.
Under the seasonal demand season, domestic inventories continue to decline, raw material supply is expected to be tight in May, and short-term copper prices may be strong
.

Fundamental changes: 1) Refined copper social stocks and bonded zone inventories continued to decline last week, 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.

Industry News:

1.
On May 18, 2020, the seventh batch of copper scrap and aluminum scrap import quota of China Solid Waste Chemical Management Network in 2020 was announced, of which the total approved import volume of copper scrap and scrap was 10,423 tons, the total approved import volume of aluminum scrap and scrap was 1,480 tons, and the approved import volume of scrap steel was 310 tons
.

2.
News on May 18, the Indonesian branch of the American Freeport McMorun Copper and Gold Mining Company said that with the increase in the number of confirmed cases, the Grasberg mine will leave only "backbone personnel" to maintain mine operations
.
Spokeswoman Riza Pratama said the move was to ensure workers could maintain a safe distance and avoid further spread
of the virus.
The Grasberg mine is the world's largest gold mine and the world's second largest copper mine
.
The mine employs approximately 25,000
people under normal conditions.

Copper downstream consumption performance is still strong, continue to destocking to drive spot to maintain premium, copper concentrate TC slightly rebounded, 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 has made the overall strength of industrial products, crude oil and copper have risen significantly yesterday, today it is expected that copper prices will remain strong, observe the pressure degree
of Shanghai copper main contract 44000, London copper 5400.