Shanghai copper shock sorting out market worries eased

On the industry front, Codelco said it had terminated its contract with Canadian company SNC-Lavalin Group Inc at its Chuquicamata copper mine because the engineering company failed to complete its tasks
.
Located in northern Chile, the Chuquicamata Copper Mine is the world's largest open-pit mine
.

In terms of the market, after the previous day's sharp decline, intraday Shanghai copper hovered above 48100 yuan / ton narrow finishing, the monthly long order basically came to an end, the market quotation was deadlocked, although the morning market quotation of the holder was not as high as the previous day, but the good copper quotation from the premium of 1120 yuan / ton only decreased to 1100 yuan / ton, on the initial signs of stagnation, flat water copper from 1000 yuan / ton reported, quickly was reduced to 970-980 yuan / ton
。 The willingness of the holder to ship the current month's invoice has weakened during the day, and the next month's invoice quotation appears, with a flat water copper discount of about 100 yuan, and a good copper premium of about 50 yuan / ton, but there are more inquiries and less
receipts.
After a week, the invoice quotation of the next month will increase day by day, and although the invoice price of the month is loosened, it is difficult to have a big room
for a big reduction.

In terms of stocks, LME copper stocks stood at 173,800t on 25 March, down 1,525t
from the previous session.
As of March 22, 2019, copper cathode stocks on the Shanghai Futures Exchange were 259,172 tonnes, down 5,429 tonnes
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

During the day, the Shanghai copper shock sorted out, as the market's fears of recession eased, and the decline in copper inventories in London and Shanghai, copper prices remained stable at a low level
.
In the spot market, the willingness of the holder to ship the current month's invoice has weakened, and the next month's invoice quotation appears, the flat water copper discount is about 100 yuan, and the good copper premium is about 50 yuan / ton, but the inquiry is more, and the receipt is less
.
Operationally, it is recommended that the Shanghai copper 1905 contract remain on the sidelines
.