The epidemic has limited copper production, and the main force of Shanghai copper has risen

Market focus: (1) US service sector activity rebounded
sharply in June.
The Institute for Supply Management (ISM) said on Monday that the index of non-manufacturing activity jumped to 57.
1 in June, the highest since February and 45.
4
in May.
(2) Atlanta Fed President Bostic said the U.
S.
economic recovery will be "more bumpy"
as coronavirus cases continue to rise.
(3) According to data compiled by the Federation of Copper Miners, 2,433 workers in Chile's national copper industry have been infected with the new coronavirus, and the company has a total of more than 70,000 employees
.

Spot analysis: On July 8, spot 1# electrolytic copper was quoted at 49800-49900 yuan / ton, with an average price of 49850 yuan / ton, a daily increase of 235 yuan / ton
.
The market continued to push steadily higher, the spot market also tried to push up the premium at the same time, holders rarely relaxed their mouths to take the initiative to reduce prices, traders actively inquired, as the main contributor to intraday transactions
.
Although the supply and demand sides are temporarily tug-of-war, and the actual transaction is slightly glued, it is difficult to change the current trend
of stable and firm water premium.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 40,289 tons on Wednesday, an increase of 327 tons per day; On July 7, LME copper stocks were 195825 tons, a daily decrease of 2,025 tons, a 15-day
decline.

Main positions: the top 20 long positions of Shanghai copper main 2008 contract are 74554 lots, a daily increase of 939 lots, short positions are 79716 lots, a daily increase of 2260 lots, a net short position of 5162 lots, a daily increase of 1321 lots, both long and short increases, and the net space increases
.

Market research and judgment: Shanghai copper 2008 volatility rose
on July 8.
Recent data from major economies around the world has been bright spots, with the US PMI data for June being better than expected, and economic recovery expectations boosting market optimism; At the same time, the spread of the epidemic in South America affected local copper mine production, and the domestic copper processing fee TC maintained a low operation of 51 US dollars / ton, and the tightening of raw material supply limited the production of refined copper, which supported copper prices
.
However, downstream demand has weakened recently, domestic copper rod processing fees have been significantly reduced, and Shanghai copper inventories have rebounded; In addition, the price difference of refined scrap widened to 2,000 yuan / ton, and the import quota of scrap copper was sufficient, which limited the upward momentum
of copper prices.
In terms of spot, few holders took the initiative to reduce prices, and traders actively inquired, which was the main contributor to intraday transactions
.
Technically, the mainstream bulls of the Shanghai Copper 2008 contract increased their positions greatly, testing the 50,000 key resistance, and the short-term shock is expected to be strong
.
Operationally, it is recommended that the Shanghai copper 2008 contract can be long around 49700 yuan / ton, and the stop loss is 49400 yuan / ton
.