The strengthening of the Shanghai copper shock may test the previous high again

On the industry front, Chile produced 460,064 tonnes of copper in January, down 4.
5 percent from a year earlier and down 17.
5 percent
from a record high of 557,780 tonnes in December, data showed on Thursday.

In the market, Shanghai copper is under pressure below the daily moving average, hovering around
50,000 yuan.
On the first day of March, the willingness of holders to raise the quotation is more obvious, the quotation discount has narrowed sharply to a discount of 100-50 yuan / ton, the market has slightly decreased in the price receipt, the flat water copper quotation discount is around 120 yuan / ton, the transaction activity is high, the good copper quotation discount is 70-60 yuan / ton, and the market is trading preference
for bargains.
Moderate buying makes the transaction appear stable and rising, wet copper trading enthusiasm is better, narrowing range is large, the quotation discount is 230-200 yuan / ton, and wet copper holders are interested in further raising the quotation for the
downstream.
The intraday market stabilized, the market trading performance picked up, the downstream bargain buying volume gradually increased, traders still expected that the receiving discount has room for price pressure, although the trading of traders is slightly deadlocked, but the trend of narrowing the spot discount is clear
.

In terms of stocks, LME copper stocks were 128,475 tonnes on 28 February, down 2,450 tonnes
from the previous session.
As of February 22, 2019, copper cathode stocks on the Shanghai Futures Exchange were 217,794 tons, an increase of 10,676 tons
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

Shanghai copper volatility strengthened during the day, as the Caixin China Manufacturing Purchasing Managers' Index (PMI) recorded 49.
9 in February, a sharp rebound of 1.
6 percentage points from January and a three-month high, coupled with a significant decline in Chile's copper production in January, and the market's bullish copper atmosphere warmed up
.
In the spot market, the market trading performance picked up, the downstream bargain buying volume gradually increased, traders still expected that the receiving discount has room for price pressure, although the trading of traders is slightly deadlocked, but the trend of narrowing the spot discount is clear
.
On the technical side, the futures price oscillates above 50,000 yuan / ton, the middle and upper Bollinger bands maintain an upward trend, and copper prices may test the previous high again
.