The main force of Shanghai copper fluctuates to the downside, and it is expected that the short-term pressure will fall

Market focus: (1) The U.
S.
House of Representatives will vote on December 18 on two articles
to impeach President Trump.
(2) British Prime Minister Johnson said that once the Brexit on January 31 next year is confirmed, he will reject any proposal
to extend the transition period.
(3) China's refined copper production in November increased by 19.
6% from the same period last year to a new monthly record high of 909,000 tons
.
(4) Jiangxi Copper and Zambian crude copper producer Qianbixi under CNMC signed a long order of 128 US dollars / ton
for CIF imported crude copper in 2020.
This RC is well below the level of $165 per tonne for long orders executed this year
.

Spot analysis: On December 18, the spot 1# electrolytic copper quotation was 48920-49010 yuan / ton, and the average price was 48965 yuan / ton, the same
as the previous day.
In the morning, the market quotation was lowered, but there was still no response, the transaction did not improve, there were still many quotations, and the receivers waited and watched, after eleven o'clock, the plate had a slight sinking, the downstream lack of interest, the intraday inquiry atmosphere was not as good as the previous day, the speculative atmosphere of traders was weak, and the market had no intention of receiving goods to make it difficult to improve the transaction
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 59,089 tons on Wednesday, a daily decrease of 1,873 tons; On December 17, LME copper stocks were 162225 tons, down 5,250 tons per day, down 18 consecutive days
.

Main positions: the top 20 long positions of Shanghai copper main 2002 contract were 89711 lots, minus 1001 lots per day, short positions were 102451 lots, 2050 lots per day, net short positions were 12740 lots, daily minus 1049 lots, long and short were reduced, and net space was reduced
.

Market research and judgment: On December 18, the main force of Shanghai copper in 2002 fluctuated
downward.
Recent Chinese economic data has performed better than expected, and upstream Chinese copper smelters signed a sharp decline in crude copper in 2020, which will lead to an increase in raw material costs, coupled with the recent partial improvement in downstream demand, which partially supports copper prices, but the risk of Brexit intensifies, the pound falls back in favor of the US dollar, and China's refined copper production in November increased sharply, reaching a record high, increasing supply to inhibit inventory decomposition, and increasing pressure
on copper prices 。 In terms of spot, the morning market quotation was lowered, but there was still no response, the transaction did not improve, there were still many quotations, more receivers, no people downstream, and the intraday inquiry atmosphere was not as good as yesterday
.
Technically, the main 2002 contract of Shanghai copper reduced its position, of which the mainstream long position reduction was larger, and it is expected to fall under short-term pressure
.