June 25 Shanghai copper morning review

In terms of the industry, environmental protection is the main focus in the near future, so far the possibility of environmental protection driving a sharp contraction in supply is extremely small, and in the medium and long term, it will have an impact
on the demand side.
Indian refineries have encountered environmental problems again, but the shutdown has little impact on the market; The risk of strikes in Escondida continues to ease, scrap copper imports are still decreasing, but metal ton imports fell little year-on-year, better than previously expected, while domestic copper production in May increased sharply year-on-year, which put some pressure
on copper prices.

In terms of news, yesterday, the central bank targeted the RRR reduction to release about 700 billion yuan, mainly used to improve the financing of
small and micro enterprises.
Historical data, the RRR reduction and the colored sector have not been significantly linked, mainly due to the divergence of Sino-US monetary policy, that is, when the direction of China and the United States is consistent and loose, it can show a strong correlation
.
Therefore, it is expected that the benefits of this RRR cut will be limited
.
For copper prices, this liquidity release eased the pressure at the 51,500 yuan / ton mark, providing support for it to stand at this position, and it is expected that the short-term rebound may be large, and it is still necessary to pay attention to how China responds to
the trade war.