Shanghai copper volatility declined, the market maintained a weak trend

On the industry front, Goldman Sachs, a well-known investment bank, gave an outlook for commodity prices on Tuesday, "We expect the policy slowdown to improve copper demand and maintain the copper price estimate at $7,000 per tonne unchanged through the end of the year
.
" ”

In terms of the market, Shanghai copper fell slightly, sorted out at 49,900 yuan / ton line, the next month contract spread maintained a back structure, and has expanded to 70-80 yuan / ton, so that the market spot premium further returned to the rational structure, the morning holder quotation discount 20 yuan / ton - premium 120 yuan / ton, the premium structure is difficult to get market recognition, the market once again opened the downward quotation mode, good copper quickly dropped to 100-110 yuan / ton, flat water copper holders cash sentiment is stronger, quotation self-discount 20 yuan / t / The ton was reduced to a discount of 50 yuan / ton
.
The change in the spread structure has made the holders show a clear mood of selling goods for cash, and there is still room
for the discount to expand under the situation of continuous near and far weakness in the situation of concentrated transaction of selling.

In terms of stocks, LME copper stocks stood at 118,600 tonnes on March 05, down 4,825 tonnes
from the previous session.
As of March 1, 2019, copper cathode stocks on the Shanghai Futures Exchange were 227,049 tonnes, up 9,255 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 weakened, due to the strengthening of the US dollar index, coupled with the unexpected surge in API crude oil inventories, lower oil prices dragged down the trend of copper prices, and copper prices fell
further.
In the spot market, the change in the spread structure has made the holders show a clear mood of selling goods for cash, and there is still room
for the discount to expand under the situation of continuous near strength and weakness of the price spread.
On the technical side, the main 1905 contract of copper is under pressure below the middle band of the Bollinger band, and the MACD indicator forms a dead cross at a high level, and the disk maintains a weak trend
.