The main force of Shanghai copper continued to rise slightly, and the short-term shock was strong

Market focus: (1) At 2:00 Beijing time on Thursday, the Federal Reserve will release the minutes of
its April monetary policy meeting.
(2) China's output of integrated circuits in April was 2.
195 million pieces, an increase of 3.
49% month-on-month and 55.
56%
year-on-year.

Spot analysis: On May 20, spot 1# electrolytic copper was quoted at 44000-44070 yuan / ton, with an average price of 44035 yuan / ton, down 25 yuan / ton
per day.
Downstream performance is weak, due to the recent delivery of long orders, market buying is still concentrated among traders; This month's delivery warehouse receipt has flowed out, and the buyer's choice in supply has increased, which makes the premium push resistance, but the holder has no willingness to reduce the price for the time being, so the premium price spread is narrow, the speculation space for traders is small, and the high copper price is high and the underwater supply and demand tug-of-war
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 66,732 tons on Wednesday, a daily decrease of 1,857 tons; On May 19, LME copper stocks were 274225 tonnes, down 2,150 tonnes
per day.
Main positions: the top 20 long positions of Shanghai copper main 2007 contracts were 66120 lots, an increase of 4001 lots per day, 81118 short positions, a daily increase of 2289 lots, a net short position of 14998 lots, a daily decrease of 1712 lots, both long and short increases, and the net space decreases
.

China's Two Sessions are approaching, and the market expects more stimulus policies; And the Fed's monetary easing policy will continue, which will be positive for commodity prices
.
In addition, the current copper processing fee TC is at a low level, and domestic demand recovers rapidly, which has strong support for copper prices
.
However, South American copper mines are scheduled to begin to recover, and it is expected that the tight supply of copper mines will begin to ease by June; At the same time, the decline in overseas orders has appeared, limiting the upward momentum
of copper prices.
On the spot side, downstream performance was weak, with market buying still concentrated among
traders due to the recent delivery of long orders.
Technically, the main 2007 contract of Shanghai copper increased its position, and the daily KDJ indicator golden cross, it is expected that the short-term volatility is strong
.
Operationally, it is recommended that the Shanghai copper 2007 contract can be long around 43400 yuan / ton, and the stop loss is 43200 yuan / ton
.