July 2 copper market brief commentary

The Shanghai copper gap overnight continued its weak shock trend today
.
The G20 Sino-US trade negotiations are limited, the US dollar index has risen rapidly due to the results of Trump's diplomacy, copper prices have fallen sharply overnight, and macro good news has been dragged
down by weak fundamentals.

Fundamentally, China's official PMI of 49.
4 was unchanged from the previous month, still below the boom-dry line of 50; the PMI of ISM in the United States was 51.
4, a two-year low, and global manufacturing pessimism is pervasive
.
In terms of the power grid with the major copper consumption, from January to May, the national power grid project completed investment of 115.
7 billion yuan, down 18.
2%
year-on-year.
It also shows that the consumption of refined copper in the first half of the year is not optimistic
.
However, it is worth noting that the global counter-cyclical adjustment is gradually implemented, the Fed is about to cut interest rates, the RBA has cut interest rates, and the domestic side plans to cut interest rates specifically for small and medium-sized enterprises, which is conducive to bringing certain upside
to copper prices in the medium term.
Copper prices are mainly adjusted by shocks in the near future, with limited room for deep decline, with a range of 4.
65-47,000, and the operation is mainly cautious and wait-and-see, and the downstream can be properly stocked at the low
.

The average price of South Reserve East China electrolytic copper: 46630 yuan, down 690, the month's premium quotation: 40 to 90, up 10
.
Today's Shanghai copper opening dipped and remained at a low level, in terms of spot, the enthusiasm of traders in the morning market was high, and the quotations of holders remained stable, continuing yesterday's quotation range, with a small downward adjustment; The receiver waits and sees, encounters low-price procurement, and the transaction situation of low-price source goods is good; Downstream on-demand procurement has not changed
.
Overall, the market procurement atmosphere is better, and the transaction situation has improved compared with the previous day
.
Copper rose 10 yuan to the current month's premium of 90-100 yuan; flat water copper premium 40-50 yuan, up 10; Wet copper subsidy 30-40 yuan, flat
.

The average price of electrolytic copper in South China: 46570 yuan, down 690, the monthly discount quotation: 0 to 10, up 15
.
Night Shanghai copper straight diving, conducive to downstream procurement, holders also correspondingly raised the spot quotation, flat water copper began to report -10, +0 yuan / ton, good copper reported +10 yuan / ton
.
The amount of low-priced flat water copper is not much, and it is quickly consumed, and the holders have concentrated on raising the quotation of flat water copper to +0 yuan / ton, while the mainstream of good copper is still +10 yuan / ton
.
Overall, the sharp decline in copper prices is conducive to refined copper consumption, downstream purchases have increased, traders have a low acceptance of higher premiums, and they are more hesitant to receive goods, but today's overall transaction is better than yesterday
.