The main force of copper opened low and fell, and the market transaction situation improved

Market Focus: (1) The Fed will use its emergency authority to establish commercial paper financing vehicles
with the approval of the Secretary of the Treasury.
The New York Fed will provide $1 trillion
a day this week through an overnight repo operation.
(2) China's refined copper output in the first two months of 2020 was 1.
527 million tons, an increase of 2.
8% over the same period of the previous year; Copper production was 2.
117 million tons, down 8.
3%
year-on-year.

Spot analysis: On March 18, spot 1# electrolytic copper was quoted at 41340-41460 yuan / ton, with an average price of 41400 yuan / ton, down 760 yuan / ton
per day.
The morning holder's quotation discount attracted active buying, and the transaction was
acceptable.
In the second trading session, the inquiry was positive, the market buying increased significantly, although the copper price fell unstoppable, but the downstream entry into the market low price gradually replenished, the market transaction situation compared with the previous day significantly improved and improved, the short-term plunge copper price to the discount brought a certain narrowness
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 246,520 tons on Wednesday, a daily decrease of 350 tons; On March 17, LME copper stocks were 220325 tonnes, up 40,600 tonnes
per day.

Main positions: the top 20 long positions of Shanghai copper main 2005 contract were 72910 lots, an increase of 1889 lots per day, 82189 short positions, a daily increase of 358 lots, a net short position of 9279 lots, a daily decrease of 1531 lots, long and short positions increased, and net space decreased
.

The main force of Shanghai copper in 2005 opened low and fell
.
The global epidemic situation continues to intensify, the impact of the epidemic on the global supply chain will continue to expand, the global economic recession may increase, and the spread of market panic will accelerate; At the same time, domestic copper smelting capacity still shows an expansion trend, while downstream demand is still weak, terminal industry demand is greatly impacted, Shanghai copper inventory is approaching a historical high, and the pressure on copper prices is greater
.
However, the People's Bank of China implemented targeted RRR reduction measures on the 16th, and the global central bank will further ease monetary policy; Moreover, China's epidemic control has achieved remarkable results, which is conducive to accelerating economic recovery and forming some support
for copper prices.
In terms of spot, the morning holder's quotation discount attracted active buying, the transaction was acceptable, although the decline in copper prices has not stopped, but the downstream entry into the market at low prices has been replenished step by step, and the market transaction situation has improved significantly compared with the previous day
.
Technically, the main 2005 contract of Shanghai copper was sealed at the drop limit, falling below the 40,000 mark, and it is expected to continue to test in the short term
.