The market has entered the off-season of consumption, and the short-term Shanghai copper is strongly volatile

In terms of the market, today's domestic spot copper prices rose slightly, Yangtze River non-ferrous metal network 1# copper price was reported at 47940 yuan / ton, up 20 yuan, 170-230 liters; Guangdong spot 1# copper price was 48160 yuan / ton, up 100 yuan; Yangtze River spot 1# copper price 47980 yuan / ton, up 20 yuan, premium 230-liter 250; Shanghai spot 1# copper price was 47850 yuan / ton, down 50 yuan
.

In the spot market, the supply is abundant, and the downstream still maintains rigid demand, and there is no willingness to replenish a large number of stocks before the holiday, and it is difficult to increase
the activity.
The epidemic in South America has triggered concerns about future copper mine supply, but domestic demand should not be too optimistic, the market has entered the consumption off-season, and copper prices are expected to fluctuate
strongly in the short term.

Industry News:

1
.
Chile's National Copper Company (Codelcol) announced that it will implement a new version of coronavirus measures at the El Teniente mine, which has the largest copper reserves, to maintain the operation of the mine at a time when more and more workers are infected.
The El Teniente mine will implement a 14-day shift system with 14 days off, and employees will be tested
three times per round.

Tony Wenas, chief executive of Freeport Indonesia, the operator of Grasberg, the world's second-largest copper mine, said on Sunday that it was on track to switch to fully underground mining by 2022
.
Tony Wenas said: "Around 75% of our operations will be converted to underground mining by 2021 and 100%
by 2022.
”

Fundamental changes: 1) Domestic refined copper inventories slightly exceeded expectations, and overseas inventories continued to fluctuate upward; 2) The copper concentrate TC is weak and stable around 51 US dollars, and the epidemic situation in Chile's mines is still in the conceptual speculation stage, and the actual operation of existing mines has not been significantly affected for the time being; 3) The Shanghai-London ratio rebounded slightly, the import window opened from time to time, and the premium of Yangshan copper port rose
again.

Shanghai copper rushed high yesterday after the night oscillation, the main force has not effectively broken through 48000, the external price upward is more obvious, London copper once again exceeded 5900 US dollars
.
Copper fundamentals have not changed much, the expectation of weakening demand margin and the risk of overseas supply disturbance coexist, it is difficult to have directional guidance on prices in the short term, and the macro is also in a state of long and short intertwined, copper prices are expected to fluctuate at a high level before the holiday, and maintain wait-and-see
if they do not break through 48,000.