The data of Luntong comes from London Metal Exchange (LME) and is priced in USD/ton of copper, while the data of Meitong comes from the New York Mercantile Exchange and is priced in cents/pound of copper. Copper prices continued to weaken overnight, with the main contract 2 106 closing at 75 170 yuan/ton, down 1.05%. This week, the Prime Minister mentioned at the regular session of the National People's Congress that it is necessary to do a good job in market regulation and deal with the impact of high commodity prices. In addition, the US CPI in April announced yesterday increased by 4.2% year-on-year, exceeding market expectations. This data makes the market more worried that inflation will accelerate and the Fed will raise interest rates faster than expected. After the news was announced, the US dollar index rose sharply, US stocks fell sharply, and copper prices weakened. It is expected that the copper price at a historical high will have a greater risk of falling back under the pressure of macro news, and bulls may consider gradually making profits and leaving.
Shanghai copper fluctuated within a narrow range during the day, and the market picked up slightly, but it still closed down by 0.07%, and the center of gravity of the futures price moved down slightly. Copper stocks in internal and external exchanges continue to dry up, and copper prices are stable. However, the atmosphere of industrial products is still difficult to be optimistic, and it is difficult for copper prices to have a bright performance. In the last week, the processing fee of copper concentrate continued to rise, and has now risen to more than 62 US dollars/ton. According to SMM, the fundamentals of raw materials have not changed much, land transportation continues to interfere with the transportation of copper concentrate in northwest China, and the shipment in Africa is still slow. In terms of inventory, LME copper inventory is still going fast, and the registered warehouse receipts have rebounded at a low level, but the extent is still limited, and the cancellation ratio has declined. In the previous period, the weekly copper inventory continued to decline, reaching a new low above 12, but the decline was narrowed. The internal and external stocks of copper continued to decline, and the spot premium remained at around 400, and the downstream was generally stable. Spot supply may be limited by voltage, waiting for the inflection point of replenishment. On the whole, although low-level inventories at home and abroad continue to support the bottom of copper prices, copper prices do not have the conditions to rise sharply, so short-term copper prices may return to the shock range.
Copper: The copper price fluctuated during the day, and the spot premium of LME fell sharply after hitting a historical record. Domestic restrictions on commodities have curbed market sentiment. The early rise of copper price is supported by global energy shortage and low domestic inventory. Power shortage is not only in China, but also in Europe. Not only did LME inventory decline, but domestic inventory was also at a low level in the early stage, and the number of state reserves was limited. Some studies show that copper production is limited and power grid investment has rebounded. Short-term copper prices may continue to adjust. It is suggested to pay attention to the mine output, copper downstream start-up, inventory and spot situation in Chile.