Market bearish factors superimposed on the upward pressure of Shanghai copper

On Wednesday, the US index strengthened, bears waited for the opportunity to increase their positions, copper prices fell under pressure, and the 5-day moving average peaked
.
Trade war concerns, weak domestic production demand, higher US dollar, superimposed market bearish factors, increasing upward pressure on copper prices, and lengthening the repair cycle
.

In terms of the market, the market temporarily stabilized, the market maintained high activity and trading volume under the guidance of traders' enthusiasm for receiving goods, and the downstream actively followed up, and the buying increased significantly compared with the previous day
.
Imported copper still has not seen an influx, supply may continue to remain tight, holders short-term gain the right to sell the voice, spot discount will continue to narrow
.
In the afternoon, the market continued to fall, and the decline increased significantly, breaking 48500 yuan / ton
.
The overall transaction activity is still high, the holder is not in a hurry to ship, but the receiver has a high enthusiasm for inquiry, flat water copper sticker 40 yuan / ton ~ sticker 20 yuan / ton, good copper sticker 20 yuan / ton ~ flat water, the afternoon transaction price is 48060 yuan / ton ~ 48260 yuan / ton
.

In terms of stocks, as of July 17, COMEX copper stocks were 218205 tons, down 644 tons from the previous day; As of July 18, LME copper stocks were 257,350 tonnes, down 2,375 from the previous day; Shanghai Stock Exchange futures inventories were 122961 tons, down 4,819 tons
from the previous session.

Industry news, Chilean copper mining committee Cocirco said that driven by Chile's largest copper mine, Chilean copper production in May increased 6.
1% year-on-year to 494,500 tons, the best monthly performance
this year.
Chile added 2.
36 million mt from January to May, up 13.
5%
year-on-year.
Escondida, a mining company controlled by BHP, more than doubled year-on-year production between January and May to 545,600 mt
.

In the short term, market pessimism has eased, but the trend of the trade war is still not clear enough, market confidence has not yet recovered, and there are greater risks
for both long and short.
In addition, it is worth noting that the recent significant decline in domestic and foreign inventories reflects that downstream demand may improve, which supports prices
.
Copper prices entered the market after the recent deep decline, and there is a certain demand for repair, but the uncertainty of the trade war coupled with the strength of the US dollar, short-term copper prices may remain low shock adjustment
.
Operationally, it is recommended to stay on the sidelines
.
FYI
.