The weakening of the Shanghai copper shock has entered a high range

In the spot market, holders are more competitive, there is a willingness to buy at low prices, downstream consumption continues to be sluggish, and the overall activity is average
.
It is reported that China's copper smelters cut processing fees in the third quarter, down 3.
6% from the same period last year; Mine end supply progress, copper concentrate arrivals are insufficient, and there is some support
at the bottom of copper prices.

Today's domestic spot copper prices fell, Yangtze River nonferrous metal network 1# copper price was reported at 49390 yuan / ton, down 130 yuan, premium 10-liter 70; Guangdong spot 1# copper price was 49400 yuan / ton, down 110 yuan; Yangtze River spot 1# copper price 49480 yuan / ton, down 110 yuan, premium 120-liter 140; Shanghai spot 1# copper price was 49225 yuan / ton, down 245 yuan
.

Industry News:

1.
Chile's copper production in May was 492,500 tons, up 1%
year-on-year, according to data released by the Chilean Copper Commission (Cochilco).
Chilean copper production has risen 3.
9% year-on-year to 2.
4 million mt
since January.
Among them: Codelco's May production increased by 3% year-on-year to 144,200 tons; BHP's Escondida copper mine production decreased by 5.
6% year-on-year to 93,400 tons; and Collahuasi copper mine copper production in April increased by 40% year-on-year to 60,100 tons
.

2.
Orias, chairman of Indonesia National Mining Holdings, said in an interview that due to the impact of the epidemic, MIND's six new metallurgical plant projects are lagging behind
.
The six new projects are Indonesia's aluminium smelter in Mumbawa district, West Home Mantan, which produces one million tonnes of alumina
per year.
Second, the expansion project of Indonesia's existing aluminum smelter is expected to increase production to 3 million aluminum alloys
per year after it is completed and put into operation in 2022.
Third, the 2 x 621.
72 MW thermal power plant
jointly built by Indonesia Coal Hill and China Huadian Power.
Fourth, Indonesian tin smelters in Bangka province produce 40,000 tons of crude tin
per year.
Fifth, the free port is in the East MW Province
copper smelter.
Finally, there is the Andamb Ferronickel Smelter, which produces 13,500 tonnes of Ferronickel
per year.

Fundamental changes: 1) Weekly stocks of domestic refined copper stocks remained depleted, and LME stocks fell slightly to around 210,000 tons; 2) The copper concentrate TC is weakly stable around 51 US dollars, and the interference at the Chilean end is still fermenting, and TC does not rule out the possibility of further decline; 3) Electrolytic copper spot premiums continue to fall sharply, some areas have reported discounts, and downstream transactions are generally weak
.

From a fundamental point of view, the story of the mine end is still continuing, and the Chilean shutdown may be further expanded, but the downstream transaction has recently performed hard, spot in some areas has turned to discount, and the market's expectations for the third quarter correction are more consistent
.
The short-term copper bullish pattern has not been broken, and the long position continues to hold, but Shanghai copper has entered a high range, 50,000 resistance is large, short-term close observation of equity market sentiment, macro attributes on copper prices The impact is still obvious
.