Shanghai copper trend is strong, before the holiday, the overall still look at high volatility

In terms of the market, today's domestic spot copper prices rose, Yangtze River non-ferrous metal network 1# copper price was reported at 47920 yuan / ton, up 430 yuan, premium 190-liter 250; Guangdong spot 1# copper price was reported at 48060 yuan / ton, up 450 yuan; Yangtze River spot 1# copper price 47960 yuan / ton, up 430 yuan, premium 250-liter 270; Shanghai spot 1# copper price was 47900 yuan / ton, up 420 yuan
.

In the spot market, holders generally hold prices, downstream consumption is still weak, traders have long-term order demand, and the transaction is slightly light
.
The epidemic continues to spread in South America, and the recovery of mine supply is not as fast as expected; TC continues to operate at a low level, and smelters are not willing to purchase; However, downstream consumption has entered the off-season, and copper prices have limited upside
.

Industry News:

Mining company Jubilee Metals Group said it has acquired 150 million tonnes of copper-bearing tailings through an agreement with Star Tanganika, which will be smelted
at Zambia's Sable refinery.
The company said the asset could double corporate profits, with copper cathode production or exceeding the capacity of the Sable refinery, which currently produces 14,000 tonnes of copper
cathode per year.
The company aims to increase the refinery's capacity to 25,000 tons
without significant capital addition.

2.
Peruvian miners are improving stagnant operations
through large-scale testing, combined with quarantine periods and shift patterns.
Pablo de la Flor, executive director of the National Institute of Mines, Petroleum and Energy (SNMPE) of Peru, believes that by the end of June production capacity will return to 80%
of pre-pandemic levels.
Peru's mining and hydrocarbon sector exports fell more than 40 percent in April as production of copper, gold, zinc and silver fell sharply, as mining companies struggled to catch up with neighboring Chile
.

Fundamental situation: 1) LME copper stocks fell to 236,600 tons, and the domestic social treasury was dematerialized to 179,900 tons; 2) copper concentrate TC remained around $51, Chilean mines are operating normally, but the risk of disturbance still exists; 3) last week, electrolytic copper spot premiums rose again, Shanghai area premium nearly 200 yuan, considering the impact
of futures for months.

Last Friday's daytime market sentiment was strong, coupled with the domestic destocking again and other benefits, copper prices tested the 48000 line upward, but after the night open, it fell sharply, the price center of gravity of London copper last week moved up as a whole, but the daily line closed longer upper shadow, the price is still far from the small high of 5928, the upward is more tangled
。 From a fundamental point of view, the spread of the epidemic in Chilean mines is still in the stage of speculation rather than actual impact, the domestic TC is low and stable, the uncertainty of the supply side has a certain supporting effect on the price, and the demand side last week domestic refined copper inventories moved down slightly, but the marginal weakening of orders in June is also an objective reality, and the characteristics of the tail of the peak season have not changed
.
The Federal Reserve directly purchases corporate bonds to stimulate the market, but the risk of a second outbreak of the epidemic and geopolitical conflicts is still there, the recent rise in precious metal prices, and the rise in VIX volatility also reflect the market's risk aversion
.
Copper prices currently have limited momentum to break upward, and the overall pre-holiday is still looking at high volatility, the main force is bounded by the 48000 line, and the pursuit needs to be broken
.