July 19 copper market brief commentary

Today's copper prices rose rapidly during the day, and after the morning open, many forces were released, and as of the close of the day, the main 1909 contract of Shanghai copper closed at 47970, up 2.
52%.

On the macro side, four countries such as South Korea and Indonesia cut interest rates overnight, of which the Bank of Korea lowered the key interest rate by 25 basis points to 1.
5%, the first rate cut in three years; Bank Indonesia cut interest rates by 25 basis points to 5.
75%, the first cut in nearly two years
.
The dovish sentiment of the vice chairman of the Federal Reserve continued, and the expectation of a US dollar interest rate cut in July increased again, and copper prices were affected by certain favorable effects and quickly rose
.

The average price of electrolytic copper in East China of the South Reserve: 47730 yuan, up 970, the monthly discount quotation: -10 to 50, down 25
.
Today's Shanghai copper opened after the rapid sharp rise, the morning spot market traders actively inquired, the quotation is mainly stable, basically the same as yesterday, but there are a small number of holders to ship at a high price, flat water copper reported a premium of 20-30 yuan / ton, good copper reported a premium of 70-80 yuan / ton; The rapid rise and maintenance of market prices at a high level has led to weak market transactions, traders are afraid of heights, mainly wait-and-see, bearish and upward discount; Near 10 o'clock, flat water copper fell to flat water, and some holders lowered it to a discount of 10 yuan; As of the end of the first section of trading, the trading volume of flat water copper is concentrated in the discount of 20-10 yuan
.
Good copper followed the price of flat water copper down, but due to the small volume, the decline in premium was relatively small, and at the end of the first quarter, the transaction price was concentrated around 50 yuan / ton of premium
.
Due to the sharp rise in Shanghai copper, which aggravated the sluggish trading situation in the off-season spot market, today's premium fell sharply, and the transaction situation was not good
.
Copper rose 40-60 yuan for the month, down 25; flat water copper discount 20-10 yuan discount, down 40; Wet copper discount 50 - discount 40 yuan, down 10
.

The average price of South China electrolytic copper in South China: 47680 yuan, up 980, the monthly discount quotation: -40 to -20, down 10
.
Shanghai copper continued to rise in early trading, which will curb downstream purchases
.
Holders reported flat water copper -30 yuan / ton, good copper -10 yuan / ton in the morning, the same as yesterday, but traders continue to be bearish and want to significantly lower the price to receive goods; In addition, the weekend holders have cash exchange demand, and actively adjust the price to pursue the transaction
.
Soon flat water copper concentrated at -40 yuan / ton, the transaction increased, but some receivers wanted -50 yuan / ton to close flat water copper, and the supply and demand sides showed a stalemate
.
By the second trading session, there are holders in the market who are still shipping, and at this time, Pingshui copper can already be traded
at -50 yuan / ton.
Overall, the sharp rise in the market and the weekend, resulting in weaker demand, further expansion of discounts, and a slight improvement in traders' willingness to receive goods after large
discounts.

The technical daily rebound further reflected, the previous stage of shock storage into power to quickly break through the previous pressure level of 47,500, but with the slowdown of the capital surface, the fundamentals may bring a certain decline to copper prices, it is expected that the recent copper price is mainly adjusted by high shocks, with a range of 4.
75-48,500
.