Macro risks and consumption are weak for a long time, and the trend of copper prices is suppressed

Shanghai copper continued to decline during the week
.
The average weekly settlement price of the 1906 contract in the current month was 46838 yuan / ton, down 196 yuan / ton per day; The previous week's average price was 47288 yuan / ton, down 0.
95%
from the previous month.
Shanghai copper stocks continued to degrade during the week, decreasing by 6,827 tons to 165439 tons, a decrease of 3.
96%, and a cumulative decline of 36.
71%
in the past nine weeks.

The domestic copper concentrate supply situation is also tight
.
In April, China's imports of copper ore and its concentrates decreased significantly month-on-month, and the purchase volume of copper concentrate by domestic refined copper producers fell by more than 10%
month-on-month and year-on-year.
However, China's industrial corporate profits returned to negative growth in April, and the official manufacturing PMI fell below the boom and bust line again in May, indicating that domestic investment and consumption data fell back, manufacturing demand slowed, and trade tensions rose, resulting in a weak outlook for industrial metal demand and weighing on copper prices
.

The tight supply pattern of overseas copper concentrate continues
.
The president of the Zambia Mining Chamber of Commerce said that Zambia's copper production in 2019 is expected to decline significantly due to high taxes; A sudden earthquake in Peru, the world's second largest producer of copper concentrate, may interfere with the normal operation and mining
of copper concentrate.
Peru's mineral production reduction due to the temporary suspension of production by some mining companies and the depletion of resources directly affected exports, and copper and concentrate exports in the first quarter fell by 14.
4%
year-on-year.

Copper Market News:

1.
Three unions at Chile's Chuquicamata mine owned by Codelco on Wednesday rejected the company's latest contract offer and agreed to strike
.
The three unions represent nearly 3,000 workers, more than
80 percent of the mine's workforce.
However, unions or companies can still ask the government to mediate to avoid a strike
.

2.
On May 27, the Municipal People's Government and Jiangxi Copper Industry Co.
, Ltd.
held a signing ceremony
for the third phase expansion project of Wushan Copper Mine.
It is reported that the total investment of the third phase expansion project of Wushan Copper Mine is about 2 billion yuan, the design and utilization resources are about 77 million tons, and the final products are copper concentrate and sulfur concentrate
.
After the project is completed and reaches production, it can form a daily ore mining and dressing capacity of 10,000 tons, with an annual output value of about 1.
6 billion yuan and an annual tax of about 200 million yuan
.
After the completion of the third phase expansion project of Wushan Copper Mine, the mining capacity, process equipment and technical level will rank among the forefront
of domestic well-mining non-ferrous metal mines.

Current supply concerns persist, supply disruption in Chile, the world's largest copper producer, Chile's national copper company Codelco's copper output fell 18% year-on-year in the first quarter, pre-tax profit fell 31%, and its Chuquicamata large copper mine may hold a strike; Zambia's political and power issues, as well as China's
scrap metal import restrictions, are suppressing copper supplies, which may lead to a tight market in the second half of the year.
Codelco lowered its copper price forecast for this year as protracted trade tensions between China and the United States continue to weigh on copper prices
.
It is expected that China's economic data in the second quarter will not deteriorate rapidly, but the long-term support of follow-up infrastructure and real estate demand may weaken, and the current peak of domestic refinery maintenance has also come to an end, and copper prices are under pressure above; However, the tight supply pattern of copper concentrate and copper scrap shows no signs of change, and the supply gap is higher than previously expected, global explicit inventories are generally at a low level, and there is also some support below copper prices, and copper prices are expected to fluctuate next
week.