November 12 copper market brief commentary

On Monday, the main contract of Shanghai copper 1912 opened at 47190 yuan / ton in the morning, opened at 47130 yuan / ton, and then rebounded and maintained stability around 47150 yuan / ton, until the end of the day, the center of gravity rose slightly to 47170 yuan / ton in the afternoon and continued to slide to the lowest level of the day of 47102 yuan / ton, closing at 47110 yuan / ton, down 250 yuan / ton, down 0.
53%.

The average price of electrolytic copper in Shanghai in the South Reserve: 47160 yuan, down 200, the monthly discount quotation: 80 to 100, up 10
.
After the weekend, the market performance did not change much compared with last week, and the morning holders maintained a habitual rise in the water, flat water copper reported +90 yuan / ton, but it was difficult to trade, and after falling to +80, trading was still
deadlocked.
Intraday cargo holders are less willing to adjust prices, the premium stalemate is around +80, it is difficult to have room for price reduction, and only a small number of low-priced sources are traded at +70
.
Good copper quotations are concentrated around
+100, +110 yuan / ton.
Despite the decline in the Shanghai copper market, the market activity is not high, the buying sentiment of traders is low, and trading has entered a flat monthly transition period
.
Copper rose 100-110 yuan for the month, up 10; flat water copper premium 80-90 yuan, up 10; Wet copper premium 20-30 yuan, up 10
.

The average price of electrolytic copper in Foshan in Nanchu: 47120 yuan, down 210, the monthly discount quotation: 20 to 70, down 10
.
On Monday, Shanghai copper fell about 200 yuan from last Friday, and in the morning, the holders began to report flat water copper +30 yuan, good copper reported +80 yuan, and there were some transactions, but there were many shipments in the market, traders wanted lower premiums to receive goods, and the trading was
deadlocked.
After ten o'clock, in order to seek transactions, the holders took the initiative to reduce the flat water copper premium to +20 yuan, and due to the concentrated inflow of good copper warehouse receipts, the premium also fell back to about +70 under pressure, and the difference between the warehouse receipt and the spot price was very small, and the transaction was successively completed after the price adjustment
.
Overall, although copper prices fell, downstream on-demand purchases did not show active entry into the market, while supply was loose, traders were to receive goods cheaply, and the overall premium of spot was slightly loosened
.

The intraday disk fluctuation range is small, the center of gravity is basically stable around 47100 yuan / ton, mainly because trade optimism has gradually been digested by the market, and OPEC Secretary-General issued an optimistic statement on the 2020 outlook, diluting the market's expectations for OPEC to reduce positions sharply, crude oil fell to around 55.
7 within the day, copper prices were hindered
by the linkage impact.
At present, the market optimism has returned to rationality after digestion, but due to the recent good PMI data of many countries, the global macroeconomic situation has shown signs of improvement, and there are still opportunities
for copper prices to maintain a stable high.
At present, Shanghai copper is supported by the long negative column, and the 40-day moving average and Bollinger middle band are supported below, waiting for the guidance of the external disk, testing whether Shanghai copper can stand firm and rush up to the 47200 yuan / ton mark
.