Shanghai copper's main force opened high and pulled back, and market demand performance was flat

Market focus: (1) The US non-farm sector added 559,000 jobs in May, lower than the market expectation of 650,000, but higher than the upwardly revised 278,000
in April.
In addition, the unemployment rate came in at 5.
8% in May, lower than the expected 5.
9% compared to 6.
1%
in April.
(2) According to my nonferrous metal network, on June 4, China's copper concentrate port inventory was 717,000 tons, an increase of 58,000 tons from last week; China's copper ore processing fee TC was 36.
5 US dollars / dry ton, up 1 US dollar / dry ton
from last week.
(3) China's copper imports in May were 445725 tons, down from 484,890 tons in April, falling
for the second consecutive month.
However, it is still 2.
2 percentage points
higher than the import volume of 436,030 tons in May 2020.

Spot analysis: On June 7, spot 1# electrolytic copper was quoted at 71330-71730 yuan / ton, with an average price of 71530 yuan / ton, a daily increase of 500 yuan / ton
.
The wait-and-see mood is strong, downstream consumption is general, and traders are mainly
circulating.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 138267 tons on Monday, a daily decrease of 2,709 tons, a decline of 4 consecutive days; LME copper stocks were 124675 tonnes on June 4, down 775 tonnes
per day.
As of the week ended June 4, the previous Shanghai copper inventory was reported 201711 tons, a weekly decrease of 6110 tons
.

Main positions: the top 20 long positions of Shanghai copper main 2107 contract were 83583 lots, minus 1939 lots, short positions were 84070 lots, daily minus 2988 lots, net short positions were 487 lots, daily minus 1049 lots, long and short were reduced, and net space was reduced
.

Market research and judgment: upstream domestic copper mine inventories continued to rise significantly, copper ore processing fees TC steadily rebounded, indicating that the tension in copper mines has improved, but South American copper mine strikes and policy risks still exist
.
Refined copper production remained stable as crude copper supply increased and sulphuric acid prices rose, easing cost
pressures.
At present, the downstream is mostly bargain-hunting, demand performance is flat, domestic inventories maintain a downward trend, and copper prices have fallen into adjustment
.
Technically, the 20-day moving average of the Shanghai copper 2107 contract turned downward, and it is expected to fluctuate
at a short-term low.