November 14 Copper Market Brief Review

On Wednesday, the main contract of Shanghai copper 2001 opened at 47050 yuan / ton in the morning, and the opening was stable around 47040 yuan / ton, and then the lowest level of the day was 46980 yuan / ton and then immediately recovered, and in the range of 47010-47070 yuan / ton until the end of the afternoon, the afternoon plate continued to hover in the range of 47010-47060 yuan / ton, the fluctuation range was small, maintained within 50 yuan / ton, and closed at 47030 yuan / ton, down 180 yuan / ton, It was down 0.
38%.

The average price of electrolytic copper in Shanghai in the South Reserve: 47040 yuan, down 80, the monthly discount quotation: 120 to 140, up 30
.
The circulating supply of the market is still tight, the supply is tight, and the market is down, the two jointly promote the rise of
premiums.
In early trading, market quotations have reached +120 yuan / ton and +140 yuan / ton, a sharp increase
from the previous day.
Traders' speculative buying sentiment is difficult to rise, but just need to buy to facilitate the deal
.
It is difficult to have room for price reduction during the day, and the sentiment of holders is high
.
The premium copper rose 140-150 yuan for the month, up 40; flat water copper premium 110-120 yuan, up 30; Wet copper premium 50-60 yuan, up 30
.

The average price of electrolytic copper in Foshan in Nanchu: 46930 yuan, down 130, the monthly discount quotation: 0 to 50, down 20
.
Although copper prices continued to fall, falling below 47,000, the structure of Contango showed signs of narrowing in recent months, and the accumulated inventory in South China exceeded 60,000 tons, and the sentiment of cargo holders was high
.
In the morning, flat water copper reported +20, good copper reported +70, after a small number of transactions, the market trading quickly fell into a tug-of-war, and receivers expected lower premiums to receive goods
.
Spot selling pressure is more obvious, in order to seek the transaction holders had to adjust the price one after another, Pingshui copper first dropped to +10, but it is still difficult to trade, it is further lowered to +0, the low-price transaction has improved, and there are still receivers pressed to the discount to receive the goods
.
Good copper premium followed the downward adjustment, and the transaction
was around +50.
Overall, even if copper prices are lower, downstream demand continues to be sluggish, and the basis narrows, holders have taken advantage of the high selling, buyers' bargaining space has increased significantly, and some flat water copper sources have fallen into the discount range
.

The intraday market remained low mainly due to the renewed disturbance of Sino-US trade, Trump's threat that if the agreement is not reached or will significantly increase tariffs on China, market risk aversion heats up, CMX gold prices return to the $1460 / oz mark, coupled with continued concerns about the demand side, crude oil continues to fall below the 56 mark, Shanghai copper hovers low due to multiple bearish news
.
Focusing on UK and US CPI data will further guide copper prices
.