Shanghai copper rebound is blocked, and the short-term shock pattern will not be changed

Industry: Juan Benavides, president of Chile's state-owned copper miner Codelco, said Wednesday that the company's Chilean Chuquicamata underground copper mine will begin operations
in the middle of this year.
Juan Benavides said the start of underground mining was a fundamental step and a milestone for
Codelco's structural adjustment.

In terms of the market, Shanghai copper slightly moved up to the first line of 50100 yuan / ton, the price difference gradually narrowed to less than 200 yuan / ton in the next month, the spot discount narrowed within the day, the holder's quotation was strongly willing to rise, the morning market quotation discount 160-discount 80 yuan / ton, attracting traders to enter the market to buy on the dip, the market inquiry is positive, the low-price source of goods is highly favored by the market, after the transaction is up, the good copper quotation rises to the discount of 70-60 yuan / ton, the flat water copper quotation discount 150-discount 140 yuan / ton, the transaction enthusiasm declines earlier, Waiting for a more suitable offer, the downstream maintains the buying order that just needs to enter the market
.
Downstream consumption will return, the next month spread is also continuing to narrow, although the spot supply is still abundant, but the narrowing trend of spot discount is obvious, but the narrowing range and speed still need to pay attention to the follow-up
of trade and consumer buying.

In terms of stocks, LME copper stocks stood at 130,925 tonnes on Feb.
27, down 2,150 tonnes
from the previous session.
As of February 22, 2019, copper cathode stocks on the Shanghai Futures Exchange were 217,794 tons, an increase of 10,676 tons
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

Intraday, the Shanghai copper rebound was blocked, overnight due to the rise in crude oil prices, copper prices performed stronger, but the latest release of China's official manufacturing PMI for February was lower than expected, and for the third consecutive month below the dry line, the market bullish atmosphere was frustrated, copper prices rebounded slightly and gradually retreated
.
In the spot market, consumption is gradually returning, and the spread is also continuing to narrow in the next month, although the spot supply is still abundant, but the narrowing trend of spot discount is obvious, but the narrowing range and speed still need to pay attention to the follow-up of trade and consumer buying
.
On the technical side, the futures price fluctuated above 50,000 yuan / ton, the MACD indicator red column continued to shrink, and the short-term copper price did not change the shock pattern
.