Shanghai copper once again oscillated and fell cautiously for short-term rebounds

Industry News:

1.
BHP Billiton's Spencer copper mine suspended operations
on Wednesday due to layoffs.
The company issued a statement saying it laid off 32 workers, including operators, maintenance workers and supervisors
.
The company makes this decision
after testing its operations, processes, and necessary resources.

2.
This week, 40 Chilean mining investment projects were unveiled at the PDAC conference (Canadian International Mining Conference) held in Toronto, most of these projects are copper and gold mining projects, and some involve salt, titanium, zinc polymetallic deposits
.
According to a brochure provided by Chile's Minister of Mines, of the 40 projects, 34 are currently in the exploration stage and the remaining 6 are in the pre-development stage
.
According to the Chilean Copper Association, the 44 mining projects could have a total investment value of US$72.
5 billion and operate over the period from 2019 to 2028, of which the Antofagasta region in northern Chile accounted for 34% of the total investment in the 44 projects, and 96% of the investment metal there is copper
.

3.
According to the performance report released by Minmetals Resources (MMG) as of 2019, the production of copper 451963 tons
in 2019.
Among them, the output of electrolytic copper totaled 67,935 tons, a year-on-year decrease of 15%.

Electrolytic copper all comes from the Kinsevere mine in Congo; Mineral copper production totalled 384028 tonnes, down 1% year-on-year, coming from the Las Bambas mine in Peru (382518 tonnes) and the Roseberry mine in Australia (1,510 tonnes).

Production is expected to be between 418,000 and 445,000 tonnes of copper this year, down from 2019, mainly due to lower mine grades at the Las Bambas mine prior to the commencement of mining at the Chelcobamba pit and declining copper grades at the Roseberry mine
.

Last night, the European and American stock markets fell sharply again, the uncertainty of the development of the overseas epidemic increased market volatility, London copper showed weak shocks, and the short-term fundamental logic of Shanghai copper did not change significantly: 1) the downstream is in the process of gradually resuming work, but the speed is slow; 2) The refined copper social treasury continues to rise, the apex still needs to be waited, and the nonferrous metal association proposes to collect and store, but the total amount of the social treasury and copper price are not yet urgent, and the probability of storage and storage is expected to be low; 3) Weekly TC continued to rise, and short-term supply of copper concentrate was loose; 4) The sulfuric acid problem restricts smelter production, but after the gradual recovery of production in central China, the demand for sulfuric acid is expected to recover
.
Price operation logic: From the perspective of prevention and control measures, the risk of epidemic spread in Europe and the United States is greater
.
Under the premise that the epidemic does not interfere with normal overseas production activities, London copper 5500 and Shanghai copper 44000 have certain support, if the overseas situation deteriorates, copper prices will continue to bottom, so be cautious about short-term rebound, and operate light positions
.
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.