Shanghai copper main high pullback short-term shock adjustment

Market focus: (1) U.
S.
President Donald Trump acknowledged that the head of the General Services Administration should be handed over like the administration-elect led by President Joe Biden, but he plans to continue to file legal challenges
to the election results.
(2) U.
S.
officials said they plan to distribute the first 6.
4 million doses nationwide once the first vaccine receives emergency regulatory approval
.
(3) China's October electrolytic copper production rose 5.
4% year-on-year to 914,000 tons, only slightly below the record high of 930,000 tons
set in December last year.

Spot analysis: On November 25, spot 1# electrolytic copper was quoted at 54840-55020 yuan / ton, with an average price of 54930 yuan / ton, a daily increase of 830 yuan / ton
.
Yangtze River Nonferrous Metal reported that cargo holders have the willingness to raise prices, downstream purchases are limited, and traders have average transactions
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 42,541 tons on Wednesday, a daily decrease of 1,097 tons, a decline of 7 consecutive days; On November 24, LME copper stocks were 154825 tons, down 1,250 tons per day, and fell for 14 consecutive days
.

Main position: the top 20 long positions of Shanghai copper main 2101 contract are 92456 lots, 1642 lots per day, 93976 short positions are minus 12 lots, net short positions are 1520 lots, daily increase of 1630 lots, long and short are reduced, net short increases
.

Market research and judgment: Shanghai copper 2101 high correction
on November 25.
U.
S.
President Donald Trump's agreement to begin a transition of power, as well as positive news about the coronavirus vaccine, boosted market risk sentiment
.
The supply of upstream copper mines remained tight, copper processing fees TC remained low, and smelter production costs continued to be high; The recent improvement in downstream demand in the copper market has driven the continuous dematerialization of inventories, and the current Shanghai copper inventory has reached a low level in nearly six years, and copper prices have performed
strongly.
However, domestic smelting production has shown an upward trend, coupled with the recent opening of the import window, the bonded zone inventory has increased, which has formed some resistance
to copper prices.
Technically, the mainstream long position reduction of the Shanghai copper 2101 contract is large, and the long position is reduced, and the short-term shock adjustment
is expected.