WednesdayShanghai CopperThe main contract 1709 rose strongly, closing up to 48560 yuan/ton in late trading, close to the intraday high of 48690 yuan/ton, the largest daily increase in a month, while the daily closing price hit the high since March 6 of the year. At present, Shanghai Copper has effectively stabilized above the moving average group, and the upward trend remains the same. In terms of term structure, the copper market maintained a positive alignment of near low and far, and the positive spread between the Shanghai copper 1708 contract and the 1709 contract widened to 140 yuan/tonne.

Asian Lun Copper soared strongly, hitting US $6400/ton at one time, but near the close of the Shanghai stock market, three months of Lun Copper fell back from its high level and entered the European market. The decline further expanded. It is now only up 0.28 to US $6278/ton, which is a drop of 1.88 from the intraday high. At present, Lun Copper has hit a high since May 18, 2015. In terms of positions, on July 21, Lun copper positions were 330000 hands, a slight increase of 33 hands per day. Last week, copper prices were reduced and strengthened, indicating that short positions were actively covered.

On July 26, Shanghai Electrolytic Copper in stock reported a discount of 90 yuan/ton-discount of 20 yuan/ton for the current month's contract, and the transaction price of flat copper was 49370-50130 yuan/ton. In the morning, copper futures are still at a high level below 49500 yuan. The market quotation is stable in the range of 50 yuan/ton -20 yuan/ton. Although there is inquiry, there is limited room for price reduction, and the stalemate between supply and demand is obvious. During the second trading period, the whole copper futures market stood in 50000 yuan, but the in stock market was in a cautious atmosphere. Speculators and winners expanded their discount for cash. Flat copper was quoted at about 80 yuan/ton, good copper was quoted at 50 yuan/ton, and wet copper was expanded to more than 100 yuan/ton. However, the quotation was reduced, the inquiry was reduced, and the transaction was less. Although the market is bullish, in stock buyers, whether traders or downstream, are still unable to enter the market above 50000 yuan. With the increase in speculative profit orders and the gradual widening of the monthly basis spread, the in stock discount may be able to expand further.

The Asian dollar index continued to fluctuate in a narrow range at a low level and is now trading near 94.1, close to the low set on June 23 last year. In addition, the U.S. Federal Reserve's manufacturing index rose to 14 in July, above expectations of 7 and the previous value of 7. At the same time, the consumer confidence index of the US Chamber of Commerce rose to 121.1 in July, and consumer confidence is expected to improve 116.5.

It is reported that the Regeneration Branch of the China Nonferrous Metals Industry Association said that it had received a notice that by the end of next year, waste hardware including waste wires and waste motors, bulk waste hardware will be banned from import, and six types of scrap copper and aluminum will not be banned. After confirmation with the regeneration branch, the import of "waste category 7" will be prohibited by the end of 2018.

Within days, the Shanghai copper 1709 contract soared to 50050 yuan/ton, although the intraday decline from the high, but the increase is still objective, completely opened the era of copper 50000, stronger than other basic metals. However, short-term copper market because 7 types of copper scrap will be banned from imports and other factors, the signs of capital speculation is obvious, long and short operations need to be cautious. Operationally, it is suggested that the Shanghai copper 1709 contract can be in the range of 49600-50800 yuan high throw low suction, stop loss of 500 yuan/ton.