April 20 Copper Market Morning Review

On the macro front, U.
S
.
housing starts fell to 1.
089 million in March, a five-month low, and the total number of building permits fell to a one-year low, indicating that the development of the US housing market is at risk, reducing expectations of a Fed rate hike in April.

In terms of the market, on April 19, Shanghai electrolytic copper spot reported a discount of 140-80 yuan / ton, and the transaction price of flat water copper was 36640-36900 yuan / ton
.
Holders are actively willing to exchange cash and take the initiative to adjust prices, which makes the current copper discount expand
compared with yesterday.
However, compared with good copper and flat water copper, the market is more interested in buying wet copper, reflecting that some downstream and traders enter the market to buy low-priced goods
at high discounts.
The supply of imported copper is still sufficient and the mainstream
of the market.
Some middlemen mainly buy and sell period, and the proportion of downstream transactions is limited, and the transaction first rises and then declines
.

In terms of stocks, as of April 19, LME copper stocks reported 144,700 tons, down 2,575 tons from the 18th, still close to the low set on August 19 last year; As of April 15, the previous Shanghai copper inventory reported 331942 tons, a sharp decrease of 28,983 tons per week, a four-week consecutive decline, indicating a slight decline in the overall domestic supply pressure in the short term
.

Overall, the Shanghai copper shock strengthened, benefiting from the weakening of the US dollar index, while black and chemical commodities further extended their gains, optimism was transmitted to the nonferrous market, and copper became the leading variety
in nonferrous metals.
It is recommended that the Shanghai copper 1606 contract can be backed by 36800 yuan to increase the trend, the entry reference is around 37300 yuan, and the target reference is around
38000 yuan.