Short-term peak season superimposed on the two sessions Copper prices are expected to fall deeply

Today's Shanghai copper opened high and low, continued to explore, the main month 2007 contract opened at 44270 yuan / ton, the highest intraday 44410 yuan / ton, the lowest 43240 yuan / ton, settled 43730 yuan / ton, closed 43260 yuan / ton, down 940 yuan, down 2.
13%.

In terms of external trading, during the Asian session, London copper opened low and went low, and the latest quotation at 15:00 Beijing time was 5289 US dollars / ton, down 101 US dollars, or 1.
87%.

In terms of the market, today's domestic spot copper prices fell, Yangtze River non-ferrous metal network 1# copper price was reported at 43690 yuan / ton, down 880 yuan, premium 140-liter 200; Guangdong spot 1# copper price was reported at 43720 yuan / ton, down 910 yuan; Yangtze River spot 1# copper price 43760 yuan / ton, down 880 yuan, premium 230-liter 250; Shanghai spot 1# copper price was 43780 yuan / ton, down 830 yuan
.
Traders seek to receive goods at low prices, the premium is slightly firm, and the downstream maintains rigid demand
.
Worries about the U.
S.
-China trade relationship have deepened, and concerns about an economic rebound have dampened market risk sentiment, with a global oversupply expected this year and pressure above copper prices
.

Fundamental operation: 1) refined copper social stocks and bonded zone inventories continued to decline last week, LME inventories rose as a whole, and internal and external inventories diverged; 2) The price difference of refined waste continues to widen, and the cost performance of copper scrap decreases; 3) Weekly TC temporarily stabilized, Peru gradually resumed production, whether the disturbance at the mine end can be transmitted to the smelting industry, it is still necessary to pay attention to the shipment situation
in the next two months.

Industry News:

1.
At this year's two sessions, Ding Shiqi, deputy to the National People's Congress and deputy general manager of Tongling Nonferrous Metals Group Holdings Co.
, Ltd.
, brought three suggestions, namely "Suggestions on Abolishing the Classification of High Energy Consumption in the Industry, and High Energy Consuming Enterprises Should Be Divided According to Standards", "Suggestions on Timely Revision of Pollutant Emission Standards for Nonferrous Metals Industry such as < Copper, Nickel and Cobalt Industrial Pollutant Emission Standards > (GB 25467-2010)" and "Suggestions on Implementing the National Collection and Storage of Important Strategic Resources for the Control of Rhenium Rare Rare Metals"
。

2.
Yu Dehui, member of the National Committee of the Chinese People's Political Consultative Conference and general manager of China Aluminum Group Co.
, Ltd.
, brought a proposal on strictly controlling the blind expansion of copper smelting capacity and accelerating the supply-side structural reform at this two sessions.

Yu Dehui said that solving the problem of blind expansion of copper smelting capacity is consistent
with the original intention of promoting supply-side structural reform.
He suggested that under the premise of giving full play to the market allocation of resources, we should strengthen macro policy guidance and industrial legal constraints, and promote the supply-side structural reform of copper smelting through vigorous implementation of "one strict control, one optimization and one upgrading", so as to achieve transformation and upgrading and high-quality development
.

3.
The Mongolian government has recently notified miner Rio Tinto that it will build a state-run coal-fired power plant to power
the local Oyu Tolgoi copper project.
It is reported that in mid-February this year, Rio Tinto Group submitted a feasibility study report
to the local government on the project.
The proposed coal power plant has an installed capacity of 300 megawatts and is planned to cost $924 million
.
Previously, Mongolia's State Grid had reached a power purchase agreement with Inner Mongolia Guohe Power Co.
, Ltd.
, and the mining of the Oyu Tolgoi copper-gold mine is currently powered
by the grid in western Inner Mongolia.
In the first quarter of this year, Rio Tinto produced 35,300 tonnes
of copper at the Oyu Tolgoi mine.

Yesterday's copper spot premium remained high, futures maintained a back structure, but the 2007 and subsequent monthly price spread significantly narrowed, Yangshan copper port premium fell at a high level, import ratio weakened to inhibit market demand, copper concentrate TC rebounded slightly, smelting production in the past two months remained stable, but there is still the possibility of being disrupted by ore supply in the
future.
Last night, the market sentiment fell, the overall industrial products were green, and the copper price fell back below 44000, but the short-term peak season superimposed on the two sessions, copper is expected to have a deep fall, intraday or shock in the 44000 area
.