Short-term copper may remain low volatility adjustment

In terms of spot, Shanghai electrolytic copper spot traded at a discount of 140 yuan / ton - 80 yuan / ton - discount for the current month's contract, the transaction price of flat water copper was 48680 yuan / ton - 48760 yuan / ton, and the transaction price of premium copper was 48700 yuan / ton - 48790 yuan / ton
.
In terms of the market, the discount quotation was fully transferred, and the willingness of the holders to ship was strong, but the overall trading atmosphere of the market was general, and the transaction situation did not improve
significantly.

In terms of stocks, LME copper stocks were 257,200 tonnes as of July 16, down 1,525 tonnes from the previous day; COMEX copper stocks were 218849 tonnes, down 951 tonnes from the previous day; As of July 17, SSE futures inventories were 127,780 tons, down 2,845 tons
from the previous session.

According to industry news, Chile's Escondida copper miners will say that BHP Billiton's labor contract offer is not acceptable
.
According to the union, the signing bonus is only 4.
5 million pesos, far less than the 15.
5 million pesos
announced by the company last Thursday.
The union has criticized the labor clause change, saying it is the lowest offer in the mining industry in recent times, and BHP has rejected workers' demands for an increase in base wages, although BHP's offer with the company will not be concluded until July 24, but the company's offer is only valid until July 17
.
As a result, unions are likely to choose to strike
for two weeks in early August.

In the short term, market pessimism has eased, but the trend of the trade war is still not clear enough, market confidence has not yet recovered, and there are greater risks
for both long and short.
The Escondida union rejected BHP's offer and kept a close eye on the development
.
In addition, it is worth noting that domestic and foreign inventories have continued to decline sharply recently, reflecting that downstream demand may improve, which supports prices
.
Copper prices entered the market after the recent deep decline, and there is a certain demand for repair, but the uncertainty of the trade war coupled with the strength of the US dollar, short-term copper prices may remain low shock adjustment
.
Operationally, it is recommended to stay on the sidelines
.
FYI
.