Shanghai copper high consolidation The support below is strong

Externally, copper was little changed today, but it may fall 2% on a weekly basis, as a stronger dollar and fading seasonal demand from China, the largest consumer, weighed on prices
.
Caixin's China's services PMI continued to fall in May, with a number of indexes, including new business, falling, while the composite PMI index hit a three-month low, reflecting a slight weakening of China's economic growth momentum and the need to further release the development potential
of the service sector.
Analysts said weak seasonal demand added to copper price concerns and a lack of buying in
China's spot market.
The London Metal Exchange (LME) three-month copper was last quoted at $4607.
50 a tonne, closing flat recently
.
London copper hit a one-week low of $4,565.
50 on Wednesday and could fall 1.
8%
on the week.

3.
Overview of the domestic copper market

On the macro front, the failure of the OPEC meeting in Vienna to reach a frozen production agreement worsened market sentiment, but the EIA inventory data released by the United States for the week was acceptable, which regained confidence in the market, and oil prices recovered their losses and strengthened again, driving base metal prices to recover
.
As for the European Central Bank, yesterday's announcement to keep interest rates unchanged was in line with market expectations, so it did not have too much impact
on the market.

In terms of the market, today's Shanghai electrolytic copper spot reported a premium of 90 yuan / ton - 140 yuan / ton, flat water copper transaction price of 35550 yuan / ton - 35620 yuan / ton, and premium copper trading price of 35570 yuan / ton - 35650 yuan / ton
.
Shanghai copper shock rebound, individual large holders opened leading the current copper premium to report sharply, a large number of holders followed the trend of high shipments, market inquiry active, but high premium transaction difficult, so the premium gradually declined
.
At about 10 o'clock, good copper reported a premium of about 120 yuan / ton, and flat water copper dropped to 100 yuan / ton, and the receiving volume did not show significant improvement
.
After 11 o'clock, the supply was further amplified, and the flat water copper that was originally tight and the price was tight has poured out, and the quotation has seen a premium of 90 yuan / ton, and good copper is close to 100 yuan / ton
.
Before the weekend, there was no downstream large number of goods, and the market showed a pattern
of more inquiries and fewer transactions.

4.
Copper closing situation

Today, the Shanghai copper 1608 contract opened at 35400 yuan / ton
.
In the morning, the narrow range of shock sorting, noon A shares rose again, Shanghai copper bears sharply reduced their positions, copper prices broke through the 20-day moving average, 1608 contract finally closed at 35720 yuan / ton, up 440 yuan / ton, up 1.
25%, and the position decreased by 10986 lots
.
The total position of Shanghai copper decreased by 17,330 lots to 790,000 lots, with a total transaction volume of 500,000 lots
.
Today's Shanghai copper main force broke through the early resistance, the support below is strong, and the trend may turn stronger
after the release of the previous risk factors.