Shanghai copper gapped, opened low and fell to a more than three-year low

In the spot market, the downstream wait-and-see willingness is strong, and the overall transaction performance is average
.
The collapse in oil prices and the epidemic hit market risk sentiment, China's demand recovery was slower, metal inventories hit new highs, and copper prices were under greater pressure above
.

Last week, the refined copper social treasury continued to rise, the total amount of the social treasury exceeded 500,000 tons, the inventory in the bonded area fell slightly, the recent arrival is expected to remain low, and the inventory in the bonded area may continue to decline; Weekly TC is at a high level, smelter production reduction, copper concentrate short-term supply is loose; The sulfuric acid problem restricts smelter production, but the demand for sulfuric acid is expected to recover
as production gradually recovers in central China.

Industry News:

1.
China's imports of unwrought copper and copper products from January to February were 846,106.
8 tons, compared with 530,000 tons
in December.
China imported 3.
768 million mt of copper ore and its concentrate in January-February, compared with 1.
93 million mt
in December.

2.
The Department of Raw Material Industry of the Ministry of Industry and Information Technology held a video conference
on the operation of the nonferrous metal industry.
Nonferrous Metals Association, Chalco Group, Minmetals Group, Yuguang Gold and Lead, Jiangxi Copper, Zijin Mining, Shandong Huajian, Chujiang New Materials, Shandong Nanshan, Libo Group, Guangdong Jianmei, Shanghai Steel Union and so on attended the meeting
.
The meeting proposed that we should respect the market and standardize development
.
Resumption of work and production does not mean working fast, we must respect market laws, organize production in combination with demand, strengthen industry self-discipline, avoid vicious competition, and achieve organic connection
between production, supply and marketing.
At the same time, the greater the pressure of production and operation, the greater the importance of ecological environmental protection and safe production
.
It is necessary to further enhance the awareness of risk prevention and control, carefully sort out the weak links in the industrial chain exposed under the influence of the epidemic, coordinate international and domestic, and continuously improve the security level
of the supply chain and the industrial chain.

3.
A few days ago, the company conducted a feasibility demonstration on the localization proposals declared by each factory and mine in 2020, and approved 95 localization proposals
(5 equipment and 90 spare parts).
According to preliminary estimates, the benefits of the successful development of the 95 projects will reach 16.
59 million yuan
.
Compared with previous years, the number of factories, mines and proposals declared for localization this year has increased
significantly.
These main equipment and key spare parts localization projects have high technical content, great difficulty in development, considerable economic benefits, and strong
demonstration effect.
At present, the company's material equipment department is giving full play to the advantages of information and channels, looking for suitable suppliers to participate in project development, so as to reduce production costs, shorten the spare parts supply cycle, and help the company "three-year innovation multiplication"
.

Price operation logic: Global panic is expected to cause the metal market sentiment to fall, Shanghai copper is expected to test the bottom again, testing the support around 44000
.
Medium-term copper prices are still expected to rebound, but the risk of possible setbacks in overseas demand will weigh on the rebound height and delay the rebound time, and bulls are
patient.