The main shock of Shanghai copper is strong, and the upside is still facing greater pressure

In terms of industry, Chilean copper miner Antofagasta released data that copper production in the first quarter rose 22.
6% year-on-year, maintaining the full-year output forecast unchanged, although China may reduce stimulus easing to suppress copper prices
.
Antofagasta said Wednesday that the increase in production during the season was mainly due to a boost from the Centinela copper mine's premium ore and increased production
.
At the same time, it said that it will maintain the annual production forecast of 75-790,000 tons unchanged
.

In terms of the market, Shanghai electrolytic copper spot contract reported a discount of 50-60 yuan / ton for the month, the transaction price of flat water copper was 49140 yuan / ton - 49260 yuan / ton, and the transaction price of premium copper was 49240 yuan / ton - 49360 yuan / ton
.
As the People's Bank of China implemented the medium-term lending facility (TMLF) operation for the second time this year, market confidence was boosted, non-ferrous metals turned red, and Shanghai copper rose to 49,300 yuan / ton during the day
.
However, the market supply is abundant, the willingness of holders to ship for cash is strong, since the morning market's good copper premium of 60-70 yuan / ton of the first line quickly dropped to about 40 yuan / ton, flat water copper holders in order to strive for transaction is from a discount of 20 to a discount of 50 yuan / ton or so, wet copper discount around 100 yuan, the transaction has only slightly improved
.
Although the market inquiry has always been enthusiastic, but the transaction is difficult to see warmth in the competition to reduce prices, the downstream continues to have a small amount of rigid demand, cautious into the market, traders are not optimistic about the recent market and spot, before May Day rising discount will become a trend, speculation before the holiday has no willingness to
receive goods.

In terms of stocks, LME copper stocks stood at 186,125t on April 24, down 2,175t
from the previous session.
As of April 19, 2019, copper cathode stocks on the Shanghai Futures Exchange were 236,734 tons, down 8,444 tons
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

Intraday Shanghai copper main force 1906 contract volatility is strong, spot market, although the market inquiry has always been enthusiastic, but the transaction is difficult to see warmth in the race to reduce prices, downstream continues to have a small amount of rigid demand, cautious into the market, traders are not optimistic about the recent market and spot, May Day before the rise of the subsidy will become a trend, speculation before the holiday has no willingness to
receive goods.
On the technical side, the Shanghai copper 1906 contract closed with a long shadow white line, indicating that the short-term upside is facing greater pressure, and the current shock is still mainly
regarded as a shock.