Daily Report 030715 2015-07-03
Stock Index
Yesterday rebound was weak and the late-day price slumped. Only the bank section rallied against the trend, concept stock all collapse. After slumping, advantage of valuation starts effecting. Though the price dove there was no voice raised of bubble, the bubble may still exited. As for the aspect of stock market rising essence – prediction, market is starting to suspect prior predictions and speculation concepts; revolving requires for concentration of new predictions and concepts. Currently, each side is positively bailout which may relieve the panic emotion but, no big effect on continuing to promote price rising. If there is no fresh concept and good economy prediction in the future in later stage, lots economy problems continue developing, we do not eliminate that market confidence to reform and transform will gradually weaken, there is a deep scope foe downward.
In current point, both side of long holding and short holding in CSI300 and SSI50 will repeatedly contending, but overall trend is weak, and do not expect of rally back.
 
 
Copper
Thursday copper price hit pressure at 5820 then fluctuant narrowly. Chinese stock market still plays an important role; facing the collapse of stock market, though the government inclined to rescue market there is limited effect. There is certain risk in macro side. As for spot perspective, LME yesterday discounts soar to $17, inventory continues decreasing 1375tons, domestic copper spot premiums 230-270, supply in domestic still tighten and the import window opens. As for supply side, Sumitomo Metal Mining and Sumitomo Corporation published in 1 July, subordinate large-scare copper mine SierraGorda in Chile had already officially into commercial operation in the end of June; half year later than prior plan but still remain the copper yield target in this year at 123,000 metric tons.
Technically, copper price resistance is 20-day moving average line, LME is $5820, domestic is RMB42,400; if price may raise through above points determines whether copper rebound scope open or not. We recommend wait for a clearly situation as for operation.


PP
Yesterday PP futures opened up low then went high, opened at 8553 and ended at 8644, trading volume decreased 34,578 lots to 295,000 lots, and holdings decreased 7,202 lots to 391,000 lots. In upstream side, FOB Korea propylene price dropped $5; average price was $955.5/ton. As for spot side, yesterday domestic PP market price had small fluctuation but remain in stabilized. Overnight crude oil slumped; PP price opened low brought a large hit to market mindset. In addition, Petro China East China and South China cancelled pricing execution list, which weaken the bolster to market costs, Merchant shipping in market price and mainly shipping positively. Downstream enterprises continue purchase as required strategy.
Yesterday main quotation of wires, north market was RMB 8450-8550/ton, east market was RMB 8600-8900/ton and south market was RMB 8550-8900/ton.
As for operation, current price volatile range continues and we recommend further observing.
 
 
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