Strong fundamental support Shanghai copper continues to be strong

The ongoing disruption of mines by the epidemic has become an important "catalyst"
for copper prices.
Chile's Codelco, the world's largest copper producer, said on Wednesday that nearly 3,000 workers had contracted the coronavirus
.
As the epidemic in South America spiraled out of control, copper prices continued to rise due to tightening supply concerns
.

The recent continuation of Shanghai's strong strength has also been boosted by macro optimism
.
According to data from the National Bureau of Statistics, China's CPI in June rose 2.
5% year-on-year and decreased 0.
1% month-on-month; PPI decreased 3.
0% y/y and rose 0.
4%
qoq.
The decline in PPI narrowed, indicating that demand continued to heat up, domestic infrastructure and manufacturing demand gradually recovered, and the market's expectations for copper demand remained optimistic, boosting market confidence
.

From a fundamental point of view, China's electrolytic copper production in June decreased by 1.
42% month-on-month to 759,200 tons, and it is expected that domestic electrolytic copper production will continue to decrease by 2.
79% to 738,000 tons in July 2020.

At present, domestic consumption has entered the off-season, especially under the impact of import sources, the outbound volume has declined significantly and is not as good as the same period of previous years, while overseas has continued to pick up
due to the recovery of the manufacturing industry.
In the case of good economic data, follow-up policies need to look at the sustainability
of economic recovery.
Fundamentally, overseas relay China supports demand, although hindered by the rebound of the epidemic in the United States, but the impact of mine interference is greater, the fundamental support is strong, and copper prices are expected to continue to oscillate
at a high level.