Shanghai copper gap high open to maintain high operation

In terms of the market, today's domestic spot copper prices rose, Yangtze River nonferrous metal network 1# copper price was reported at 43620 yuan / ton, up 610 yuan, premium 120-liter 180; Guangdong spot 1# copper price was 43700 yuan / ton, up 600 yuan; Yangtze River spot 1# copper price 43690 yuan / ton, up 620 yuan, premium 200-liter 220; Shanghai spot 1# copper price was 43590 yuan / ton, up 575 yuan
.

In the spot market, traders are willing to ship at high prices, but downstream transactions are flat, and transactions show the characteristics
of oversupply over the weekend.
Strong April import data from China and signs that the U.
S.
-China trade deal will continue to be remembered provide strong support
for copper prices.

Industry News:

1.
Data released by Chile's copper commission Cochilco on Thursday showed that Chile's large copper mines expanded production in March, and Chile's national copper company increased
production sharply, according to data released on Thursday.
Among them: Codelco production increased by 14.
8% year-on-year to 147,600 tons, and production jumped 4.
2% to 386,600 tons in the first quarter; Escondida production increased by 0.
9% year-on-year to 101,800 tons; and Collahuasi mine production increased by 6.
8% year-on-year to 50,400 tons
.

2.
The Peruvian government issued a supreme decree authorizing the mining industry to resume mining activities
as of May 2, 2020.
Under the Act, mining companies can mine, refine, store and transport minerals and metals, or they can continue project construction
.
The resumption of operations will proceed gradually, with the first phase starting in May and ending
in August.

3.
General Administration of Customs: From January to April, China imported 1.
75 million tons of unwrought copper and copper products, and 360 million tons
of iron ore and its concentrate.
China's imports of unwrought copper and copper products in April were 460,952 tons, an increase of 12.
43% year-on-year and 4.
31% month-on-month, and imports of unwrought copper and copper products in March were 441,926 tons
.

Fundamental changes: 1) the refined copper community warehouse remained around 300,000 tons, the LME inventory shock fell to around 240,000 tons, the seasonal recovery of downstream demand and the replacement consumption of waste essence still existed, and the destocking process continued; 2) Copper concentrate TC continued to decline to $55, and the disturbance at the mine end may be reflected in the production of refined copper in May, but at present, the inflection point of the overseas epidemic has appeared, and the state of emergency has been lifted in South America, and the supply disturbance of copper concentrate is expected to be only a short-term phenomenon
.

Yesterday, Shanghai copper was strongly volatile, and the main contract broke through the 43,000 line
.
At present, the downstream peak season effect is still obvious, and the high-rise water stack strengthens destocking, giving the disk upward momentum, but on the other hand, the market's long-term fundamental expectations are generally weak, and the price upward is not smooth
.
Under the background of strong reality vs weak expectations, although there is still momentum for repair in the short-term non-ferrous upward, the space is limited, and copper prices have entered the tail of the upward trend, paying more attention to protecting profits
.