Shanghai copper sharply cuts overnight gains Short-term lack of key upward momentum

In terms of external trading, Asian London copper fluctuated in a narrow range around 6970 US dollars / ton, of which 3-month London copper traded at 6990-6956 US dollars / ton intraday, and is now trading at 6969 US dollars / ton, down 0.
34% per day, but still running below the main moving average group, indicating that the upper selling pressure is heavier, and the performance is weaker than that of Shanghai copper
.
In terms of positions, on March 5, the position of London copper was 305,000 lots, an increase of 1,463 lots per day, but the overall trend in the recent decline was the main trend, indicating that funds continued to flee the copper market
after the copper price fell.

In terms of the market, on March 7, Shanghai electrolytic copper spot reported a discount of 100 yuan / ton - 50 yuan / ton for the monthly contract, and the transaction price of flat water copper was 51900-52020 yuan / ton
。 Shanghai copper price spread expanded to about 270 yuan / ton, downstream confidence in copper prices, increased market entry, holders performed more firmly and held prices, the morning market quotation was stable in flat water copper discount 100-90 yuan / ton, good copper discount 60 yuan / ton, the second trading session, due to the market transaction is acceptable, the enthusiasm for buying is stable, the inquiry is active, the holder slightly raised the quotation, good copper can be pushed to the discount of 50 yuan / ton, flat water copper is at a discount of about
90 yuan / ton.
Market trading flat water copper wet copper is obviously better than good copper, downstream buying increased, boosting market activity
.

In terms of the industry, according to past experience data, March and April are the peak season for air conditioning production, and the output of air conditioners is basically at the highest point
of the year.
At the same time, automobile production in March is also at a high level, so the market is generally optimistic about the "gold three silver four" market
.
However, the monthly value of air conditioning production in 2017 was higher than the level of previous years, and the year-on-year value of the month also reached more than 20%, and automobile production was also maintained at the highest level
in recent years.
Under the background of such a high base, it is difficult to guarantee
the increase in downstream demand.
At the same time, the slump in the real estate market will also drag down the demand for home appliances, in January 2018, house price data from 70 large and medium-sized cities showed that the sales prices of newly built commercial residential buildings in first-tier cities rose and fell year-on-year, and the price growth rate of second- and third-tier cities fell
.
Therefore, although the peak consumption season is coming, it is difficult to guarantee the increase in demand, and the driving materials for copper prices are limited
.

During the day, the Shanghai copper 1805 contract fell under pressure to 52480 yuan / ton, partially cutting the previous day's gains, indicating that the sustainability of the short-term rebound in copper prices is in doubt, due to the lack of key upward momentum
.
In operation, it is recommended that Shanghai copper temporarily focus on technical trading, and the 1805 contract can be sold high and low between 52300-53000 yuan / ton, and the stop loss is 450 yuan / ton
each.