The main Shanghai copper contract opened low to the upside, and the market inquiry atmosphere further warmed up

Market focus: (1) Caixin China's service sector recorded 51.
8 in January, down 0.
7 percentage points, a three-month low; the composite PMI fell 0.
4 percentage points to 53
.
(2) U.
S.
factory orders rose 1.
8% m/m in December versus 1.
2% expected, and the previous value was revised from a decline of 0.
7% to a decline of 1.
2%.

(3) Glencore's full-year copper production fell 6% to 1.
37 million tonnes in 2019, and the company's Mutanda copper mine in Congo stopped production
early last November.

Spot analysis: On February 5, spot 1# electrolytic copper quotation was 45100-45380 yuan / ton, the average price was 45240 yuan / ton, a daily increase of 290 yuan / ton
.
SMM reported that spot quotations were further lowered, most of the only trading traders in the morning market held steady in flat water, copper and flat water, the market inquiry atmosphere further warmed up, and enterprises willing to buy goods on the dip gradually improved
.
In order to seek the attractiveness of selling goods, they still quoted a discount of 40-30 yuan / ton, dragging down Shanghai traders to find it difficult to maintain a stable water line
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 86,904 tons on Wednesday, a daily increase of 3,994 tons; On February 4, LME copper stocks were 178325 tonnes, down 2,400 tonnes
per day.

Main positions: the top 20 long positions of Shanghai copper main 2003 contract are 71681 lots, minus 942 lots per day, short positions are 82011 lots, daily increase of 838 lots, net short positions are 10330 lots, daily increase of 1780 lots, more short increases, net space increases
.

Market research and judgment: On February 5, the main force of Shanghai copper 2003 opened low and upward
.
The People's Bank of China has invested a total of 1.
7 trillion yuan in liquidity in two days, and there is still an expectation of stimulus policies, and market concerns have eased, which is positive for copper prices
.
China's January Caixin composite PMI fell 0.
4 percentage points to 53, affected by the epidemic production and demand, it is expected that the data in February will fall significantly; the recent upward trend of domestic copper inventories or enter the accumulation cycle; the US economic data is strong, coupled with the market believes that it is difficult for the UK and Europe to reach a trade agreement within the deadline, and the US dollar index is running strongly, which puts some pressure
on copper prices.
In terms of spot, spot quotations were further lowered, most of the only trading traders in the morning market held steady in flat water, copper and flat water, the market inquiry atmosphere further warmed up, and enterprises willing to buy goods on the dip gradually improved
.
Technically, the main 2003 contract daily KDJ of Shanghai copper turned upward, and the mainstream position increased and short, and it is expected that the short-term trend is strong
.