After the Dragon Boat Festival, demand tends to be slightly better, and Shanghai copper shocks rise slightly

On the macro front, the current Fed interest rate meeting is approaching, the US dollar and US bond yields are showing a higher trend, which makes the external non-ferrous prices under pressure to a certain extent, but on the other hand, the current persistently high inflation and the continued strength of crude oil prices also have a supportive effect on copper varieties, pay attention to the results of the eurozone central bank interest rate decision
.

On the supply side, recent road jams in Peru have persisted, with protests causing fires
near Southern copper's Los Chancas project and MMG's Las Bambas Chalcobamba pit project.
Las Bambas has been suspended since April 20 due to protests
.
The activity of the domestic copper concentrate spot market has decreased significantly, and the market trading is very light, and the copper concentrate port inventory rose to 1.
038 million tons, up 51,000 tons
from the previous week.
TC prices are limited in price change, currently at $78.
66/mt, and are expected to be gradually digested this week in South American mining disruptions, and TC prices may fall
slightly as refinery overhauls end in June.
However, due to the current high level of copper concentrate port inventory, the supply of the mine end will not be too tight for the time being
.

In terms of consumption, production began to recover in East China with the gradual improvement of Shanghai's unblocking, but due to the approaching Dragon Boat Festival holiday, the willingness to buy goods downstream was not strong, and on-demand replenishment was the mainstay, and the superimposed aluminum ingot financing default event led to market participants being more cautious, affecting trading activity
.
The future market needs to focus on the support effect of national policies and the specific landing situation, and it is expected that the demand side will tend to be slightly better
after the Dragon Boat Festival holiday this week.

In terms of stocks, LME stocks fell by 03,800 tons to 116,900 tons yesterday, a larger
decline.
SHFE stocks remained at 0.
65 million tonnes
.

Overall, the current market is optimistic about
the improvement of demand.
At the same time, on the macro side, there are doubts about whether the pace of the Fed's interest rate hike will be disrupted, and the inflation level remains high, and the positive feedback of higher crude oil on inflation is becoming more and more obvious
.
Overall, the combination remains positive
for copper prices.
Operationally, it is still recommended to go long on dips
.
Businesses with purchasing needs can also sell imaginary put options to receive
premiums.