The main force of Shanghai copper opened low and went low, showing weakness in the short term

On the industry front, the World Bureau of Metal Statistics (WBMS) reported on Wednesday that the global copper market had an oversupply of 241,000 mt from January to March 2019, compared with a supply gap of 43,000 mt for the whole of 2018
.
In March 2019, global refined copper production was 1,893,800 mt and consumption was 1.
8 million mt
.

In terms of the market, Shanghai electrolytic copper spot contract reported a premium of 90 ~ 160 yuan / ton, a flat water copper trading price of 46700 yuan / ton ~ 46850 yuan / ton, and a premium copper trading price of 46740 yuan / ton ~ 46900 yuan / ton
.
Overnight bears dominated the market, London copper fell below $5,900, Shanghai copper fell to a new low in nearly 3 months, the target was 46,500 yuan / ton, and the copper price was weak at 46,700 yuan / ton during the day
.
After the copper crash, the market continued yesterday's high premium quotation, the holder's quotation premium 100 ~ 160 yuan / ton, warehouse receipt outflow, the market is afraid to fall and buy weak, good copper led a slow downward adjustment, good copper quotation to 140 ~ 150 yuan / ton, flat water copper unchanged
.
Copper prices fell downstream, spot consumption is weak, holders give up price active shipments, high premium to inhibit market transactions, without the support of long orders, trade activity is significantly reduced, after a period of tug-of-war at a high level, and the plate has not stopped falling, it is inevitable that there will be a continuous
downward trend.

Stocks: LME copper stocks were 187,700 tonnes on May 22, down 1,550 tonnes
from the previous session.
As of May 17, 2019, copper cathode stocks on the Shanghai Futures Exchange were 187,963 tons, down 6,245 tons
from the previous week.
From a seasonal perspective, current inventories remain low compared to the last five years
.

During the day, the main 1907 contract of Shanghai copper opened low and went low, due to the high operation of the US dollar and the continuation of trade tensions between China and the United States, Huawei was cut off by many Western companies, the overall performance of the macro environment was not optimistic, and the colored sector generally declined
.
In the spot market, copper prices fell sharply downstream, spot consumption was weak, holders gave up price active shipments, high premiums inhibited market transactions, without the support of long orders, trade activity is significantly reduced, after a period of tug-of-war at a high level, and the plate has not stopped falling, it is inevitable that there will be a continuous downward trend
.
On the technical side, the main 1907 contract of Shanghai copper declined, falling below the support of the important threshold of 47,000 yuan / ton, showing weakness
in the short term.
In terms of operation, it is recommended that the Shanghai copper 1907 contract can consider relying on 47,000 yuan / ton for short-term operation
.