Shanghai copper opened low and went low, and the short-term continued to decline

Market focus: (1) The World Health Organization declared the new coronavirus a global pandemic
.
It could further destabilize already fragile world markets, leading to tighter travel and trade restrictions
.
(2) The Ministry of Industry and Information Technology reported that the risk of oversmelting in the copper industry has intensified this year, consumption needs to be expanded, and the disorderly expansion
of copper smelting capacity is strictly controlled.

Spot analysis: On March 12, the spot 1# electrolytic copper quotation was 43000-43330 yuan / ton, the average price was 43165 yuan / ton, and the daily decline was 1110 yuan / ton
.
After the sharp fall in copper, traders maintained a high degree of activity, the downstream continued to buy the right amount of dips, the market performed deep V shock in the morning, although it rose from the low level at noon to about 300 yuan / ton, the cautious mood under the unending trend of the decline still pervades the market, and it may be difficult
to raise the premium.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 230368 tons on Thursday, an increase of 13,855 tons per day; On March 11, LME copper stocks were 189725 tons, down 700 tons per day, down for 10 consecutive days
.

Main positions: the top 20 long positions of Shanghai copper main 2004 contracts were 85708 lots, a daily increase of 3381 lots, short positions of 99147 lots, a daily increase of 1548 lots, a net short position of 13439 lots, a daily decrease of 1833 lots, both long and short increases, and net space decreases
.

The main force of Shanghai copper in 2004 opened low and went
low.
The World Health Organization has declared the new coronavirus epidemic a global pandemic, and the epidemic will have a huge impact on the global supply chain; At the same time, the risk of domestic copper smelting surplus intensified, downstream demand is still weak, Shanghai copper inventories continue to accumulate, and the pressure on copper prices will be great
.
However, the expected range of the Fed's March decision to cut interest rates reached 75 points, and global central banks will further ease monetary policy; China's epidemic control has achieved remarkable results, which is conducive to accelerating economic recovery and partially supporting
copper prices.
In terms of spot, after the sharp fall of intraday copper, traders maintained a high degree of activity, and the downstream continued to buy the right amount of dips, and caution still permeated the market under the unending downward trend, and it may be difficult
to raise the premium.
Technically, the main 2004 contract daily moving average of Shanghai copper is short, and the mainstream position increases and decreases more, and it is expected that the short-term will continue to decline
.
Operationally, it is recommended that the Shanghai copper 2004 contract can be short around 43400 yuan / ton, and the stop loss is 43550 yuan / ton
.