Shanghai copper fell under pressure, partially cutting yesterday's gains

Externally: Asian market London copper around 4730 US dollars / ton around narrow fluctuations, of which 3 months London copper slightly fell 0.
19% to 4729 US dollars / ton, basically maintained the overnight gain, but at present London copper has not broken through the upper average suppression, its technical form is still weaker than Shanghai copper, short-term operating range focus on 4650-4850 US dollars / ton
.
In terms of positions, on October 24, the position of London copper was 315,000 lots, an increase of 797 lots per day, which was at a low level during the year, indicating that after the copper price declined, the enthusiasm for long-short participation was low
.

Macro: The Asian dollar index stabilized around 98.
6 as short-term U.
S.
economic data was strong, and the probability of a Fed rate hike in December was now as high as 70%.

Watch the US New Home Sales and Services PMI tonight, which is expected to provide more guidance
on economic performance.
In terms of industry, it is reported that Chilean miner Antofagasta copper production in the third quarter was 180,600 tons, an increase of 8.
7% quarter-on-quarter, but the company still expects copper production to be slightly skewed towards the lower end
of the target range this year.

In terms of market: on October 26, Shanghai electrolytic copper spot reported a premium of 170-240 yuan / ton, and the transaction price of flat water copper was 38020-38220 yuan / ton
.
Shanghai copper speculative buying enthusiasm has decreased, the lack of transaction has caused holders to gradually reduce the current copper premium, and the previous speculative sources of speculative sources after the rebound of the market poured out, resulting in a large increase in the supply of copper, the premium has fallen all the way, and the price of supply between the same brand generally fell by more than
50 yuan / ton.
Near the end of the month, the supply of the current month's ticket is limited, the quotation is about 20-40 yuan / ton more expensive than the source of the next month's ticket, the downstream continues to watch coldly, there is no response to the market, the current market on whether the current copper high premium price can continue to diverge
.

The Shanghai copper 1612 contract came under pressure during the day to retrace, confirming yesterday's gains, but Shanghai aluminum and Shanghai zinc remained relatively strong, and the depreciation of the yuan stimulated inflation expectations
.
At present, Shanghai copper is running again above the moving average group, and copper prices are still expected to rise
.
In operation, it is recommended that the Shanghai copper 1612 contract can be backed above 37,300 yuan, and the entry is concerned about around 37,700 yuan, with a target of 38,500 yuan / ton
.