Shanghai copper rushed back down and faced downward pressure

Market focus: (1) China's GDP completed in the third quarter was 266172 billion yuan, a year-on-year actual increase of 4.
9%, which was basically in line with
market expectations.
(2) British Prime Minister Boris Johnson said that unless the EU fundamentally changes its position, it is time for the UK to prepare for Brexit without a trade deal
.
(3) The labor and management of the Escondida copper mine in Chile have reached an agreement on labor and agriculture, and the risk of strike at the world's largest copper mine has been lifted
.

Spot analysis: On October 19, spot 1# electrolytic copper was quoted at 51510-51710 yuan / ton, with an average price of 51610 yuan / ton, down 210 yuan / ton
per day.
Yangtze River Nonferrous Metal reported that traders were forced to reduce their premiums for transactions, market consumption diluted, downstream on-demand procurement, and the transaction was average
.

Warehouse receipt inventory: the total number of Shanghai copper warehouse receipts on Monday was 67,626 tons, an increase of 225 tons per day; On October 16, LME copper stocks stood at 184,850 tonnes, up 15,975 tonnes
per day.
As of the week ended October 16, Shanghai copper stocks in the previous period reported 157547 tons, a weekly increase of 1093 tons
.

Main positions: the top 20 long positions of Shanghai copper main 2011 contracts were 81936 lots, a daily decrease of 1141 lots, short positions were 66014 lots, a daily decrease of 2386 lots, a net long position of 15922 lots, a daily increase of 1245 lots, both long and short decreases, and a net increase in long
.

The dollar index was supported by the lack of progress in a new stimulus package in the United States and the increased risk of a no-deal Brexit
.
In September, the operating rate of domestic copper enterprises rebounded, and after the holiday, the market purchasing sentiment heated up, the spot premium rose, and there were signs of recovery in demand, which supported copper prices
.
However, upstream Escondida copper mine labor and management reached an agreement to avoid strikes, and copper mine TC has recently rebounded slightly, and copper mine supply tension has shown signs of easing signs; Coupled with the rebound of the epidemic in Europe, the economic outlook is still under greater pressure, and copper prices are facing downward pressure
on the recent sharp increase in copper inventories.
Technically, the Shanghai copper 2011 contract reduced its position, focusing on the support at the 50800 position, and it is expected to be weak and volatile
in the short term.