gamingcryptotoinvestin| Lun Copper broke through historical highs, and the spot TC index fell to negative values: overseas supply was tight, and COMEX inventories continued to decrease

News summary

Copper rose 2.5 percent yesterdaygamingcryptotoinvestin.27%gamingcryptotoinvestin, breaking through historical highs, the main body of Shanghai copper rose 0.99%. Fed officials are cautious about inflation and interest rates. China's refined copper imports increased by 17.82% year-on-year in April, and supply from the Democratic Republic of the Congo increased significantly. Copper concentrates are tight, the spot TC index is negative, and COMEX copper inventories continue to decline. U.S. copper pushes up Luntong copper, opening up new room for growth. The trading recommendation is to hold multiple orders and wait and see for new orders.

Newsletter text

[Copper market shows signs of recovery]

The outer copper futures market welcomed gains yesterday. London Metal Exchange (LME) copper prices climbed to US$10,958.5/ton, an increase of 2.27%, an increase of US$243.5/ton from the previous trading day. At the same time, the main copper contract on the Shanghai Futures Exchange closed at 87600 yuan/ton, recording a 0.99% increase, up 860 yuan/ton, and the number of positions decreased by 6876 lots.

In terms of the spot market, LME copper inventories recorded growth yesterday, totaling 105,900 tons, an increase of 2250 tons. This increase was mainly contributed by warehouses in Busan and Kaohsiung. At the same time, copper inventories on the New York Mercantile Exchange (COMEX) fell by 188 short tons, bringing total inventories to 19922 short tons.

Federal Reserve officials said they were cautious about returning inflation to the 2% target, implying that monetary policy would remain restrictive. After assessing future data and the balance of risks, the Vice Chairman of the Federal Reserve has a conservative view on expectations for interest rate cuts this year. The president of the Cleveland Fed expressed reservations about the speed at which inflation has fallen and the number of interest rate cuts this year.

According to the latest data from the General Administration of Customs of China, refined copper imports in April reached 305,818.914 tons, a decrease of 3.50% from the previous month and an increase of 17.82% year-on-year. The Democratic Republic of the Congo became the largest supplier, with imports increasing by 23.70% month-on-month and exploding by 138.75% year-on-year. Chile ranked second with imports of 54,094.483 tons. Although it fell by 10.01% month-on-month, it still recorded a year-on-year growth of 24.43%.

Logical analysis shows that the copper concentrate market is tight and the spot TC index is negative. Although domestic production was higher than expected, overseas supplies were in short supply and COMEX copper inventories continued to decline. Deliverable copper from all over the world has flowed into the U.S. market. On the technical chart, the rise in U.S. copper prices has driven the rise of Lunun copper. After Lunun copper broke through historical highs, it indicates that new room for growth has opened up.

The trading strategy recommends that multiple investors continue to hold, while new investors wait and see for the time being. In terms of arbitrage strategies, it is recommended to maintain a wait-and-see attitude. In terms of option strategy, investors holding CU2406-P-76000 can continue to exercise it.