The bearish atmosphere dominates the market, and copper prices are under pressure and have fallen overall

Global financial markets were turbulent, and U.
S.
stocks triggered circuit breakers twice during the week, ending the 11-year bull market completely
.
The United States announced that it would cut taxes on some industries hit by the epidemic, and the Bank of England urgently cut interest rates by 50 basis points, but failed to ease market panic
.
The continued spread of the epidemic around the world has brought uncertainty to the market, the downward pressure on the global economy has further increased, and the collapse of oil prices caused by the international crude oil "price war" has hit market confidence
.

In terms of the market, in the week of March 13, domestic spot copper prices fell sharply this week
.
The average price of copper in Yangtze River nonferrous metal network 1# was 43546 yuan / ton, down 406 yuan / ton per day, and down 4.
54% on the weekly line; The average price of the previous week was 44976 yuan / ton, down 1430 yuan / ton compared with last week, down 3.
18%
from the previous week.

In terms of inventory, copper stocks continued to deteriorate, with a cumulative decrease of 16,575 metric tons to 183,700 metric tons, a cumulative decrease of 8.
28%.

Shanghai copper stocks continued to climb, increasing by 34,959 tons to 380085 tons, an increase of 10.
13%, and the cumulative increase in the past eight weeks reached 184.
23%.

Copper market news

In January and January, Chile's national copper company Codelco copper production was 118,600 tons, down 6.
8%
year-on-year.
BHP Billiton's Escondida copper mine produced 100,900 tonnes, up 10%.

Chile's copper board Cochilco predicts that the country's copper production will decline in 2020 and copper demand will also decrease
.

Freeport-McMoRan announced plans to increase copper and gold sales by 30-40%, reduce net cash costs for the copper business by 25% to $1.
3/lb, and at least double the company's cash flow by 2021 compared to 2019
.
Stressing that supply chains and the movement of goods have not been significantly affected
since the outbreak of the pandemic.

3.
According to data from the General Administration of Customs, China's imports of unwrought copper and copper products in the first two months of this year increased by 7.
2% year-on-year, copper concentrate imports fell 1.
2% year-on-year to 3.
77 million tons, and smelters cut production and reduced the demand
for raw materials.

4.
The fourth batch of scrap metal import quotas this year was announced, involving a total of 3,520 tons of approved imports of copper scrap and scrap, reaching a new low
.
The easing of the epidemic in China has boosted the hope of improving industrial metal demand, the construction of UHV projects has accelerated again, and infrastructure construction is expected to increase
.
However, the risk of copper smelting surplus has intensified, consumption has not fully returned to normal, macro panic continues to dominate the market, copper prices are under pressure
.

The epidemic has become a new core risk point, disrupting global supply chains, dragging down the already weak global economy, crude oil price wars have caused risk assets to fall again, and institutions have lowered global economic growth forecasts
.
The market expects global central banks to start a new round of quantitative easing to release liquidity to stimulate economic recovery
.
At present, there is a slight surplus of electrolytic copper, and the accumulation of inventory beyond expectations continues to suppress copper prices, but the domestic epidemic control has achieved remarkable results, and real estate and other markets have rush demand, and the demand side is still worth looking forward to
.
From the industrial level, copper scrap is tightening, guiding waste-friendly enterprises to choose refined copper
.
At present, the risk is gradually clarifying, copper prices are basically testing the bottom, but the macro bearish atmosphere dominates the market, and copper prices are expected to be weak and volatile
in the short term.