Shanghai copper opens high and goes high, and the characteristics of the tug-of-war between supply and demand are obvious

Market focus: (1) US President Trump pushed to raise tensions in the Middle East, and U.
S.
oil rebounded
in a wave of declines.
(2) The sixth batch of restricted imports of scrap copper this year is approved by 2,150 physical tons, and the total approval amount so far this year is 529761 tons
.
(3) WBMS shows that the global copper market had an oversupply of 98,000 tons in January-February 2020, and a shortage of 197,000 tons in 2019
.

Spot analysis: On April 23, spot 1# electrolytic copper was quoted at 41900-42050 yuan / ton, with an average price of 41975 yuan / ton, a daily increase of 940 yuan / ton
.
Morning market holders quotations firm, market inquiries active, downstream buying is not as good as the previous day, copper futures rose more, holders maintained a strong price, downstream buying interest decreased significantly, traders speculation space is limited, supply and demand side tug of war characteristics are obvious
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 132128 tons on Thursday, a daily decrease of 11,769 tons, a 26-day decline; On 22 April, LME copper stocks were 264525 tonnes, down 200 tonnes
per day.

Main positions: the top 20 long positions of Shanghai copper main 2006 contract are 74478 lots, minus 4027 lots, short positions are 81395 lots, daily minus 7105 lots, net short positions are 6917 lots, daily minus 3078 lots, long and short are reduced, net space is reduced
.

The geopolitical situation in the Middle East has become tense again, coupled with the strengthening of expectations of oil producers to increase production cuts, U.
S.
oil prices have rebounded from their lows, and liquidity risks have eased; In addition, the current tight supply of upstream copper mines is gradually emerging, and the price of copper mine TC is down, which supports copper prices
.
However, under the impact of the epidemic, the market risk aversion is heavier, and the US dollar continues to be strong; Coupled with the obvious decline in overseas orders, the demand outlook is still worried, and the resistance above copper prices still exists
.
In terms of spot, copper futures rose sharply, holders maintained high prices, downstream buying prices decreased significantly, traders had limited speculation space, and the characteristics of supply and demand sides were obvious
.
Technically, the main 2006 contract of Shanghai copper reduced its position, and the mainstream bulls reduced their positions more, and it is expected to run in short-term shocks
.