Pufa Futures: Copper prices fall, aluminum prices are still strong

Today, Shanghai copper's main 0512 contract opened at 36,800, a high of 37,040, a low of 36,720, and a closing price of 37,020. Throughout the day, 30,822 contracts were traded and 630 positions were increased.

LME and COMEX inventories continued to decrease, especially with COMEX's inventory continuing to hit new lows. The price of LME dropped after hitting a new high for six consecutive trading days. Because LME and COMEX were affected by the reduction of inventories, they continued the market due to the hurricane affected by the United States and successively set a new high. The price drop was inevitable. The level and timing of this callback must be determined after two or three trading days. Below the callback are two more supportive price ranges, one is 3850 and the other is 3750 to 3800.

After Shanghai Copper experienced two consecutive gaps, the rising power was exhausted. The price trend will come down with the price of LME, and there is support price below 36490. Since the LME price head shape has not been confirmed, Shanghai's price is passive again. Therefore, it is not advisable to short shorts at the same time. The two trading days are mainly based on wait and see. After confirming the level and time of this callback, you can do more dips again.

Yesterday, LME's aluminum price was not affected by the fall of other metals, prices remained strong, hitting a recent high, and LME's aluminum spot prices have now risen. China National Aluminum Group reported a spot price of 17,150 yuan/ton, which is a bullish effect on the aluminum market. After the domestic aluminum price rose by 600 yuan, the price has come to a standstill, because now this price basically reaches the aluminum manufacturer's cost price, and some aluminum producers will throw out the goods at this price. After consolidation, there will be an uptrend in the aluminum price.

Pufa Futures Zhu Yifan