Shanghai copper opens low and recovers, and prices are expected to stabilize

Market focus: (1) U.
S.
President Donald Trump declared Washington state a "major disaster area" for the new crown pneumonia epidemic and ordered the federal government to provide assistance to
all levels of government in the state.
(2) Antofagasta announced on March 20 that it will suspend maintenance of some facilities of the Los Perambrass expansion project to reduce the number of employees on site and avoid the risk of virus infection, and the mine produced 357,800 tons of copper in 2018
.

Spot analysis: On March 23, spot 1# electrolytic copper quotation was 36450-36830 yuan / ton, the average price was 36640 yuan / ton, and the daily decline was 1680 yuan / ton
.
Traders took the initiative to lower their quotations, but there were still many inquiries, and there were still few actual receivers
.
In the second trading session, traders bought cash selling period and low prices to close long orders, but the downstream remained cautious during the day, copper prices fell endlessly, consumption fell, weak transactions continued to discount the trend, intraday transactions mainly contributed to traders, and the market performance had a certain space
for price reduction.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 242183 tons on Monday, a daily decrease of 3,336 tons, a 4-day decline; On 20 March, LME copper stocks were 227875 tonnes, down 3,150 tonnes
per day.
As of the week ended March 20, Shanghai copper stocks in the previous period were reported 377247 tons, down 2,838 tons
weekly.
Main positions: the top 20 long positions of Shanghai copper main 2005 contract were 68510 lots, minus 535 lots per day, short positions were 76751 lots, daily minus 418 lots, net short positions were 8241 lots, a daily increase of 117 lots, long and short were reduced, and net space increased
.

Shanghai copper main force in 2005 opened low and rebounded
during the day.
The global epidemic continues to spread, the number of confirmed cases in the United States has exceeded 30,000, the global economy is facing recession, and market panic is spreading; The production and sales of the terminal industry have been greatly affected, European and American automobile companies have closed some factories, the demand outlook is still pessimistic, and there is greater pressure
on copper prices.
However, the world continues to release liquidity, and policies to deal with the epidemic continue to increase; At the same time, the epidemic spread and the impact on global copper mine production increased; Coupled with the improvement of the epidemic situation in China, enterprises have resumed work and production, demand has gradually recovered, and Shanghai copper inventories have fallen slightly in recent days, and copper prices are expected to stabilize
.
In terms of spot, the downstream remained cautious during the day, copper prices fell endlessly, consumption fell, weak transactions continued to discount the trend, intraday transactions mainly contributed to traders, and the market performance had a certain space
for price reduction.
Technically, the main 2005 contract of Shanghai copper is longer and lower shadow, and the mainstream position increases and decreases more, and it is expected that the short-term weakness will continue
.