The dollar index retreated from its high, and copper prices climbed in the short term

In the external market, the Asian Lun copper oscillation rose slightly, of which as of 16:06 Beijing time, the 3-month London copper was reported at 7,000 US dollars / ton, up 0.
2% per day, and is currently effectively running above
the moving average group.
In terms of positions, as of June 1, the position of London copper was 318,000, a daily decrease of 1,899 lots, and in the past week, the position of London copper has increased and decreased, indicating that long and short trading is cautious
.

In terms of the market, on June 5, Shanghai electrolytic copper spot reported a discount of 30 yuan / ton - 30 yuan / ton for the monthly contract, and the trading price of flat water copper was 51730-51890 yuan / ton
.
Shanghai copper next month price spread significantly narrowed to more than 100 yuan / ton compared with yesterday, the willingness of holders to hold the price can not be supported by the strong buying of the market, the morning market quotation discount 10 yuan / ton - premium 40 yuan / ton, down to discount 30 yuan / ton - premium 30 yuan / ton, there is still room for price pressure, in contrast, traders good copper buying interest is slightly higher, mostly used for long-term order replacement transactions, downstream buying is weak, flat water copper performance divergence
。 After eleven o'clock, some traders eager to exchange cash quoted South Korea, Lufang and other brands at a discount of 40 yuan / ton, the increase in the willingness to exchange cash at high and the current situation of fear of heights to stop at the standoff, making it difficult to raise the price of premiums, the market performance is cautious, the market conditions are still lackluster, and the transaction has not substantially improved
.

On the macro front, the Asian dollar index fluctuated in a narrow range around 93.
98, as the risk of political turmoil in Italy eased, and the dollar index lacked upward momentum in the short term, or was expected to come under further pressure
.
In addition, the market continues to digest the boost from China's May manufacturing PMI
.

In terms of industries, according to the approval of the Party Central Committee and the State Council, the central environmental protection inspection team entered 10 provinces including Hebei, Inner Mongolia, Jiangsu and Jiangxi in early June to carry out a "review" of the first round of central environmental protection supervision and rectification, and the stationing time was one month
.
According to feedback from a large smelter in Jiangxi, at present, some refineries that use scrap copper to produce crude copper have been shut down, and some enterprises have limited production and production plans
.

During the day, the Shanghai copper 1807 contract oscillated as high as 52290 yuan / ton, effectively running above the moving average group, enhancing the confidence of bulls to go long, partly driven by China's strong manufacturing PMI
.
At the same time, the short-term dollar index retreated from its highs, giving a partial boost
to copper prices.
In terms of operation, it is recommended that the Shanghai copper 1807 contract can be cautiously held above 51800 yuan, and the target is around
52800 yuan.