July 11 Shanghai copper morning review

In terms of the market, the spot contract reported a discount of 20 yuan / ton - 30 yuan / ton - 30 yuan / ton, although there is replenishment downstream, traders ship a large number of goods, trade speculation space is limited, trade activity has not been significantly improved, the market supply is abundant, and the characteristics of supply and demand tug-of-war have appeared
again.

In terms of news, Indian smelters and Chilean copper mines labor agreement negotiations, although the risk is not large, copper concentrate supply continues to be loose, its potential investment release possibility increases
.
In June 2018, China's refined copper production was 722,500 tons, down 3.
32% month-on-month and up 10.
47% year-on-year, and the cumulative output in the first half of the year was 4.
3261 million tons, a cumulative increase of 12.
9%
year-on-year.

Market sentiment improved
significantly after the macro risk event settled.
And after the fall in copper prices, the willingness to replenish stocks at the bottom of the downstream increased, and the spot strengthened slightly higher
.
In addition, the lack of negotiations on the Escondida mine regarding the rise of labor risk speculation in copper concentrate has also supported short-term sentiment
.
However, given the relatively high inventory, as well as the seasonal weak supply and demand, the rebound was
limited.
It is expected that copper prices will remain stable and volatile
in the near future.