Shanghai copper main force high pullback market traders cautiously waited

Market focus: (1) The yield on the US 10-year Treasury note rose 2.
5 basis points to 1.
601% on Monday, rising for the second consecutive session
.
(2) The BlackRock Investment Institute believes that the threshold for the Fed to change its policy stance is high and believes that the market may be underestimating this
.
The Fed has been slow to raise rates, and it will take almost 5 years for the policy rate to reach 1%, or by the end of
2026.
(3) On Monday, BHP Billiton's Chilean Escondida and Spence copper miners' union asked its members to vote on strike action after negotiations between labor and management stalled
.

Spot analysis: On May 11, spot 1# electrolytic copper was quoted at 75200-75500 yuan / ton, with an average price of 75350 yuan / ton, down 1550 yuan / ton
per day.
Traders are cautious and wait-and-see, downstream just demand, overall transaction difficulties
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 148499 tons on Tuesday, an increase of 8,888 tons per day, an increase of 11 consecutive days; On May 10, LME copper stocks were 123,200 tons, 3,525 tons per day, down for 17 consecutive days
.

Main positions: the top 20 long positions of Shanghai copper main 2106 contract were 83860 lots, minus 2946 lots per day, short positions were 98312 lots, daily minus 9044 lots, net short positions were 14452 lots, daily minus 6098 lots, long and short were reduced, net space decreased
.

Market research and judgment: Shanghai copper 2106 high correction
on May 11.
US Treasury yields continue to climb, and rising inflation fears cool market risk sentiment; However, the US labor market is still weak, the pace of interest rate hikes by the Federal Reserve has been slow, and market concerns have eased
.
Upstream copper processing fees have stabilized, although the extension of Chilean border closures until the end of May may affect mining activity
.
Smelting activity picked up
in April, as rising copper and sulphuric acid prices eased pressure on the cost side.
Domestic downstream demand is still weak, and the operating rate of copper companies has declined year-on-year, but the economic recovery in the future market is expected to accelerate demand growth, and copper inventories are at a low level, supporting copper prices
.
Technically, the mainstream short position reduction of the Shanghai copper 2106 contract is large, focusing on the support of the 5-day moving average, and it is expected that the short-term shock will continue to rise
.
In terms of operation, it is recommended to operate lightly in the range of 75000-77300 yuan / ton, and the stop loss is 700 yuan / ton
each.