Market worries heat up, and the main force of Shanghai copper rushes to a higher pullback

Market Focus: (1) The U.
S.
Department of Commerce said it added 11 Chinese companies suspected of human rights abuses to the list of U.
S.
economic entities related to
China's treatment of Uyghurs in Xinjiang.
(2) The United Kingdom announced the suspension of its extradition treaty with Hong Kong due to escalating
tensions between the United Kingdom and China over the Hong Kong National Security Law.
(3) BHP Billiton announced its second quarter production report, during the reporting period, BHP Billiton's copper production in the second quarter totaled 414,000 tons, down 7% year-on-year and 3%
month-on-month.

Spot analysis: On July 21, spot 1# electrolytic copper quotation was 51830-52050 yuan / ton, the average price was 51940 yuan / ton, and the daily increase was 565 yuan / ton
.
Inventories decreased slightly, some traders had the willingness to ship at a high price in the morning, Pingshui copper once reported to 60 yuan / ton, helpless downstream acceptance is low, on the one hand, copper prices are rising again, downstream enterprises' own orders are reduced to chase high replenishment desire is low; On the other hand, the number of traders shipping intraday shipments has also increased compared with the previous day, and there are more
circulating supplies.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 63,571 tons on Tuesday, a daily decrease of 1,691 tons; On July 20, LME copper stocks were 151075 tons, down 6,275 tons per day, down 24 consecutive days
.

Main positions: the top 20 long positions of Shanghai copper main 2009 contracts were 74710 lots, minus 3617 lots, short positions were 74338 lots, a daily increase of 904 lots, net long positions were 372 lots, daily decrease of 4521 lots, more short increases, net more decreases
.

The global epidemic situation is still grim, coupled with geopolitical tensions between China and the United States, China and the United Kingdom, and market worries are rising; The recent recovery of low Shanghai copper inventories, coupled with the widening of refined waste price spreads, has put pressure
on copper prices.
However, the global stimulus policy will continue, China's economy is showing a stable and positive trend, and there is an expectation of further upward repair of downstream demand in the future; And the supply of upstream copper mines is tightening, copper processing fees TC is lowered again, coupled with the weak price of sulfuric acid, domestic copper smelting production will continue to be suppressed, which has strong support for copper prices
.
In terms of spot, inventories decreased slightly, and some traders had the willingness to ship at a high price in early trading, but the downstream acceptance was low
.
Technically, the mainstream long position reduction of the Shanghai copper 2009 contract is large, the 10-day moving average support is obvious, and the short-term shock is expected to be strong
.
Operationally, it is recommended that the Shanghai copper 2009 contract can be long around 51750 yuan / ton, and the stop loss is 51500 yuan / ton
.