1. Trend Analysis

As shown in the above chart, on May 18, spot copper reported 43,296.67 yuan / ton, a slight decrease of 0.16% from the previous trading day, a decrease of 11.7% from the beginning of the year, and a decrease of 9.64% year-on-year. LME copper March contract opened high and moved higher, closing at $ 5,247.5, an increase of 1.20%. The main contract of Shanghai Copper rose sharply in the morning, closing at 43,270 yuan, an increase of 0.32%.

2. Market analysis

Due to the improvement of domestic industrial data, the market's optimistic sentiment rebounded slightly, and copper futures rose slightly, but spot copper prices retreated slightly. Fundamentally, the copper supply is limited, and the downstream maintains rigid demand. Most transactions are mainly received by traders, and the overall activity is average. Peru is gradually recovering its economy, large mines are taking the lead in resuming work, port collection and shipment speeds are accelerated, and the tight supply pattern at overseas mines has eased. Copper mine shipments have gradually recovered, but port transportation and shipments still need to be queued. Maintaining a tight pattern, domestic terminal consumption is improving, but the global economy is declining, the epidemic situation is likely to be repeated, and there is pressure above the copper price. The refined waste price gradually returned to normal, and the substitution effect of refined copper weakened.

3. Outlook

Based on the above situation, copper analysts of SunSirs Nonferrous Branch believe that: tight supply supports copper prices, domestic demand has improved, but due to the impact of the global economy, the sharp rise in copper prices is constrained. It is expected that copper prices will maintain a strong trend in the short term.

Related listed companies: Jiangxi Copper (600362), Tongling Nonferrous Metal (000630), Yunnan Copper (000878).

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