The London copper rebound was not affected by the intensification of the Sino-US trade conflict

Fears that the U.
S.
-China trade war could dent commodity demand have pulled industrial metals prices sharply lower in recent months, with copper prices tumbling 17 percent
from their June highs.
But investors have prepared
for the tariffs.
Copper prices were supported as global equities and non-dollar currencies unexpectedly resilient, as expectations of stimulus from China supported demand
.
China is the world's
largest consumer of metals.
Analysts said any negative impact of tariffs and lower Chinese demand was effectively offset by increased infrastructure spending, and the tariff decision had been "priced in.
"

In terms of fundamentals, copper inventories are low, and there is a general expectation of pre-holiday stocking in the market, so it has maintained a high premium despite the uncertainty of the macro situation
.
Overseas, Chile will impose a 3 percent mining tax on all companies operating in the country, and the project could affect copper miners
that produce more than 12,000 tonnes a year.

On the macro front, the Trump administration will tax 200 billion goods and increase the tax rate from 10% to 25%
in 2019.
China will retaliate by imposing tariffs on U.
S.
imports
.
The trend of Shanghai copper is different, and the future market needs to be cautiously monitored
.

In terms of the market, during the day, the spot copper trading price of Shanghai Nonferrous Metals Trading Center was reported at 48810-48900 yuan / ton, up 635 yuan / ton from the previous trading day, and the spot premium to the 1810 contract was reported at B190-B280 yuan / ton
.
The supply of goods is sufficient during the day, mainly imported copper, traders have good shipments, and the downstream demand is general
.
Traders see more
volatility.
The surge in spot premiums was mainly due to the increase in traders' bargain buying and downstream enterprises actively joining the WTO to replenish stocks in preparation for the big holiday, resulting in firm spots
.

After the concentrated release of short-term trade war risks, copper prices began to stabilize and adjust
.
While inventories continued to decline, domestic spot supply was tight, superimposed on Mid-Autumn Festival and National Day holiday stocks, spot premiums hit a new high in the year, and the near strength and far weak back structure continued
.
It is expected that copper prices will show a stable rebound trend
supported by the spot end.
The operation is light and long
.