The industrial side is not obvious, and the copper market is under pressure and the rebound is weak

In the week of June 6, domestic spot copper prices rebounded weakly this week
.
The average price of Yangtze River nonferrous metal net 1# copper was 46305 yuan / ton, down 127.
5 yuan / ton per day, and down 1.
10% on a weekly basis; The average price of the previous week was 46926 yuan / ton, down 621 yuan / ton compared with last week, down 1.
32%
from the previous week.

On the supply side, copper concentrate supply tightened during the year, with some mines in Africa's two largest copper producers, Congo and Zambia, shutting down some mines, and output from one of Peru's largest copper mines disrupted by road blockades by local communities
.
Scrap copper imports are likely to decrease, and refined copper output may be affected
by the reduction in supply at the mine end.
Spot copper concentrate refining fees, which have fallen to their lowest level in six and a half years, are expected to remain under pressure, potentially impacting copper mills' profits, with smaller smelters likely to be more vulnerable to spot prices
.

In terms of demand, it is still relatively sluggish, and consumption has weakened for a long time without bright spots during the year; Domestic investment and consumption data have fallen, the peak of centralized maintenance of refineries has come to an end, the country is facing the release of refined copper supply, market confidence is insufficient, and the copper market is weak and spot trading has no bright spots
.
The downward trend of global manufacturing has not changed, industrial production has slowed down, and the demand outlook is not optimistic
.
Overall confidence in the year ahead is down, mainly due to the manufacturing sector
.
However, the profit on the industrial side is not obvious, and concerns about demand have triggered market hedging
.

Inventories, London copper stocks fell slightly this week, down 350 metric tons, or 0.
17
%, to 211,650 metric tons.
Shanghai copper continued to decline, falling by 19,813 tons to 145626 tons, a decrease of 11.
98%, and a cumulative decrease of 44.
29%
in the past 10 weeks.

City News:

1.
The CEO of Vedanta Resources recently said that production at Zambia's Konkola Copper Mines (KCM) has stopped
.
Vedanta opposes Zambia's decision this month to appoint an interim liquidator to manage Vedanta Resources' 90,000-tonne KCM business, saying in a statement that international arbitration
is being sought.

Capstone Mining Corp.
(TSX: CS) announced Tuesday that it has reached an agreement to sell its 100% stake in the Minto copper mine to Pembridge Resources PLC (Lon:Pere).

Capstone reportedly started selling
as early as February 2018.
The Minto Mine, located in North Whitehorse, approximately 240 kilometers from the Yukon, Canada, is currently undergoing maintenance and service
.
At the time of the suspension of mining in October 2018, the mine had proven and probable reserves of 3.
9 million tonnes grading 1.
67% copper and 0.
41 g/t gold
.

Recently, the outlook for industrial metal demand has been worrying due to slowing global economic growth and international trade issues, especially copper prices remain weak
due to concerns about Chinese demand.
China's industrial metal consumption accounts for about half of
global demand.
The decline in mine supply and the continuous decline in inventories cannot provide strong support to copper prices, but there is still a surplus of global copper supply driven by continued weak demand; At present, the orders of fine copper rods are acceptable, the order volume of copper plate and foil market transaction performance is poor, the order volume of copper pipe processing and copper rod enterprises is general, and the overall downstream consumer market is slightly light
.
The uncertainty of global economic and international trade issues has also led to uncertainty in demand, and copper prices are expected to remain weak and volatile
next week.