Shanghai copper volatility is strong, and the overall trading volume of the market is light

Today's domestic spot copper prices rose, Yangtze River nonferrous metal network 1# copper price was reported at 51650 yuan / ton, up 470 yuan, premium 0-liter 60; Guangdong spot 1# copper price was 51680 yuan / ton, up 460 yuan; Yangtze River spot 1# copper price 51760 yuan / ton, up 460 yuan, premium 120-liter 140; Shanghai spot 1# copper price was 51690 yuan / ton, up 460 yuan
.

In the spot market, traders still favor flat water copper, downstream just need consumption, traders are mainly traded, and the overall transaction is light
.
Sino-US relations tend to be tense, and the overseas epidemic continues to spread, which may weigh on global economic growth and industrial metal demand, but some institutions are still optimistic about base metals, as China's demand situation is better than expected, and copper prices may fluctuate
at high levels in the short term.

Industry News:

1.
Glencore's Mopani copper mine in Zambia said on Thursday that the coronavirus pandemic and low copper prices prompted the company to recommend suspending production, but the proposal was rejected
by Zambia's mining ministry.
The Mopani copper project said it would appeal the decision of the Zambian Ministry of Mines and would continue mining operations pending the outcome of
the appeal process.
Previously, mining at Mopani was suspended in April due to factors such as the coronavirus, but the decision restarted operations
in early May after strong opposition from the Zambian government.

2.
Trevali announced on Wednesday that it has begun restarting operations at the Santander copper mine and has developed new coronavirus health protocols
.
The Santander copper mine is expected to take approximately two weeks to reach stable production levels
.
The mine consists of
an underground mine, a 2,000-tonnes-per-day processing plant, a conventional sulphide flotation plant and associated infrastructure.

Fundamental changes: 1) the refined copper bank rose to 200,000 tons for two consecutive weeks, and LME stocks fell again to 159,800 tons; 2) the weekly TC of copper concentrate was slightly lowered to $50, watching whether the Chilean government can effectively mediate the strike this week and whether there will be a chain of other strikes
.

Short-term copper prices are still greatly affected by the equity market, especially after the sharp correction in the stock market, and the previous over-rising copper prices began to squeeze out the bubble
.
From the perspective of domestic fundamentals, the downstream has accumulated for two consecutive weeks, the spot premium has dropped significantly, and the expectation of weaker consumption is gradually being fulfilled, but it is doubtful whether the Chilean mine strike can be effectively mediated, and there is also a risk of other mine strikes in the future, and there is support
on the supply side.
Overseas London copper inventories continued to decline, and external prices performed firmly
.
It is difficult for copper prices to fall deeply in the short term, and the price may mainly fluctuate at a high level, and the operation can sell wide straddle options to short volatility
.