Sino-US trade concerns remain Shanghai copper rebound is limited

In terms of external trading, Asia Lun copper fluctuated in a narrow range around 6830 US dollars / ton, of which as of 16:12 Beijing time, the three-month London copper was reported at 6823 US dollars / ton, up 0.
14% per day, and the cumulative decline of London copper in the past five days reached 5.
7%.

In terms of positions, as of June 19, the position of London copper was 332,000, a daily decrease of 9,760 lots, and after the fall in copper prices, the position decreased, indicating that long and short positions were mainly
reduced.

In terms of the market, on June 21, Shanghai electrolytic copper spot traded at a discount of 160-110 yuan / ton for the contract of the month, and the trading price of flat water copper was 51570-51670 yuan / ton
.
The morning market quotation discount 150-110 yuan / ton, traders in order to complete the delivery of the long order within the month, intentional price reduction, biased towards good copper, early good copper concentrated transaction at 120 yuan / ton, flat water copper is still hard top discount about
160 yuan / ton.
However, with the outflow of delivery sources, the market source of goods has increased again, especially the delivery warehouse receipt, adjusted the price of shipment, and was once pressed to a discount of 170 yuan / ton, long-heard of Zhongtiaoshan, silver, and even Zijin and other brand warehouse receipts have emerged, which is attractive to trade speculators, and long-term order deliverers still ignore these low-priced sources and maintain a high price due
to brand restrictions.
The downstream maintains rigid demand, and the market transaction is mostly contributed by traders, and the spot stalemate pattern
may be maintained during the week.

On the macro front, the Asian dollar index oscillated slightly and is now trading around 95.
26, hitting a new high
since July 17, 2017.
In the short term, the market continues to focus on trade issues between China and the United States, as well as the People's Bank of China's targeted RRR reduction measures for micro, small and medium-sized enterprises
.

In terms of industry, the latest report of the World Bureau of Metal Statistics (WBMS) shows that the global copper market supply gap from January to April 2018 was 213,000 tons, and the supply shortage in 2017 was 235,000 tons, of which the global refined copper production from January to April was 7.
77 million tons, an increase of 219,000 tons or 2.
9% year-on-year; Refined copper consumption was 7.
99 million tons, an increase of 350,000 tons or 4.
58%
year-on-year.
In China, refined copper production from January to April increased by 128,000 tons year-on-year, and demand was 4.
262 million tons, an increase of 620,000 tons or 17% year-on-year, indicating that demand growth is higher than production
.

During the day, the Shanghai copper 1808 contract oscillated to 51780 yuan / ton, and it is currently barely closing around M60, and the short-term may start an oscillation trend here, but due to Sino-US trade concerns and the strengthening of the US dollar index, the rebound is expected to be limited
.
It is recommended that the Shanghai copper 1808 contract can be backed by 52600 yuan below the high sky, enter the market reference around 52200 yuan, and target 51600 yuan
.