Shanghai copper volatility weakened, and the divergence between supply and demand in the market increased

In terms of industry, according to foreign news on March 19, KGHM extended negotiations to avoid a strike
by Sierra Gorda copper miners in Chile.
It comes after a union leader at Chile's Sierra Gorda copper mine said on Monday that the miner could strike this week and reject the latest conditions
offered by the former manager in contract negotiations.
Miner KGHM until Tuesday night asked the government to mediate to help it reach an agreement
with 520 union members.

In terms of the market, Shanghai copper continues to run
around 49,100 yuan / ton.
In the morning, the quotation of the cargo holder was firm, continuing the style of the previous day, the quotation of flat water copper premium 900 yuan / ton, good copper quotation premium 1100-1150 yuan / ton, high premium, low willingness to receive goods in the market, difficult to trade, holders gradually reduced the quotation to test market acceptance, good copper adjusted to around 1050 yuan / ton, flat water copper adjusted to 870 yuan / ton The line is still difficult to improve
。 In the second trading stage, some holders of good copper quotation premium of about 1030 yuan / ton, flat water copper is higher than 860 yuan / ton, downstream maintenance just need to buy, wet copper maintenance last day's quotation premium of 750-800 yuan / ton
.
The transaction enthusiasm of the entire market during the day decreased compared with the previous day, the divergence between supply and demand increased, the firm quotation pattern was difficult to change for the time being, and the supply and demand tug-of-war state will become increasingly obvious
.

In terms of stocks, LME copper stocks were 181,200 tonnes on 19 March, down 2,625 tonnes
from the previous session.
As of March 15, 2019, copper cathode stocks on the Shanghai Futures Exchange stood at 264,601 tonnes, an increase of 28,432 tonnes
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

During the day, the Shanghai copper shock weakened, in the spot market, the downstream maintained just need to buy, the entire market transaction heat decreased compared with the previous day, the difference between supply and demand increased, the quotation pattern is difficult to change temporarily, and the supply and demand tug of war will become increasingly obvious
.
On the technical side, the main 1905 contract of copper is still in the volatility range, the performance of the MACD indicator tends to be stable, and it is recommended to maintain a volatile view
in the short term.