Dec 17 (LTIT) –In the second half of 2019, the fluctuation trend of the copper metal market can basically be said to be poor. From the mixed news of the continuous development of Sino-U.S. trade issues, to the sustained long-term interest rate cut by the U.S. Treasury, to the low economic data and the gradual reduction of domestic import approvals of six categories, then the change of currency strength and environmental protection factors are also involved. All these make the copper price with strong financial attribute lack of financial attention, although there are occasional unexpected market situations. However, there will be short-term profit-making operations soon. LME copper’s annual high is about 6,608 US dollars in mid-April, and then the trend in the second half of the year ranges from 5,518 to 6,218 US dollars but mostly fluctuates between 5,800 and 5,900, while 6,000 US dollars becomes the upward pressure level and breakthrough task in the second half of the year. The fluctuation range of SHFE copper futures is mostly around 45,000 to 49,000, and mostly in the middle of 47,000.

Judging from the domestic situation, the supply of recycled copper continues to be in short supply due to environmental protection throughout the year, which promotes the consumption of electric copper and is often in a state of slight premium. In terms of inventory quantity, the inventory announcement status of LME copper futures and SHFE futures also showed a downward trend in the last quarter of the year. The inventory announcement of LME copper rose from a high of about 250,000 tons in June this year to about 330,000 tons in August, and then continued to show a downward trend to about 170,000 tons in mid-December, showing a significant decline. The inventory announcement of SHFE copper futures in the same period was about 140,000 tons in June and 160,000 tons in August. At present, the level announced in mid-December is about 110,000 tons, which is also in a state of decline. These are all favorable fundamentals for copper. Combined with favorable data and moderating factors between China and the United States, attracting funds will push the copper price out of the breakthrough trend in the last period of 2019, with LME copper weighing above the US$ 6,000 mark, while SHFE copper futures will test the first level of 49,000 yuan below 50,000 yuan.