Shanghai copper downward rebound, short-term recommendation to maintain a volatile view

In terms of industry, according to foreign news on March 18, a union leader at Chile's Sierra Gorda copper mine said on Monday that the miner may hold a strike this week, so the latest conditions given by the former investor in the contract negotiation were rejected
.
Miners can ask the government to mediate until Tuesday to help it reach an agreement
with its 520 union members.

In terms of the market, Shanghai copper continued to hover at 49100 yuan / ton
.
The quotations of holders in the morning market are stable, the price trend remains unchanged, and the willingness to exchange cash is low
.
Holders quoted a premium of 850-1050 yuan / ton, the market stopped and waited for a short time, bargain buying increased, traders led the market to trade, the morning market activity was high, a round of receipt led to a rapid increase in quotations to flat water copper premium 870 yuan / ton, good copper premium 1070 yuan / ton
.
In the second trading session, under the guidance of the holders, good copper has been raised to 1100 premium quotation, the transaction market is not as good as the morning market, flat water copper in the premium 880-900 yuan / ton deadlock, wet copper from the morning market premium 750 to a premium of 800 yuan / ton nearby
.
Before the close of the afternoon market, Good Copper had already shown a premium of 1150 yuan / ton, and the transaction was further suppressed
.
Some downstream inquiries have increased, the willingness to replenish stocks at low prices has increased, and the activity among traders has improved, but the price discourse power is still dominated by the willingness of cargo holders
.

In terms of stocks, LME copper stocks stood at 183,825 tonnes on 18 March, down 2,600 tonnes
from the previous session.
As of March 15, 2019, copper cathode stocks on the Shanghai Futures Exchange stood at 264,601 tonnes, an increase of 28,432 tonnes
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

Shanghai copper rebounded during the day as the recent weakness of the US dollar index and the impact of higher crude oil prices supported copper prices
.
In the spot market, some downstream inquiries have increased, the willingness to replenish bargains has increased, and the activity among traders has improved, but the price discourse power is still dominated by the willingness of cargo holders
.
On the technical side, the main 1905 contract of copper is still in the volatility range, the performance of the MACD indicator tends to be stable, and it is recommended to maintain a volatile view
in the short term.