April 21 Shanghai copper brief commentary

Yesterday, the dollar index continued to fall during the day, and showed a certain recovery
in overnight trading.
The copper price is still relatively strong, and the holders still have a certain price reluctance to sell, so the actual transaction is still relatively limited
.
However, the inquiry did recover from the previous day
.
At present, there may be a certain demand for just purchase downstream before May Day, coupled with the current weak US dollar, so in the short term, copper prices still maintain a relatively optimistic attitude
.

On the macro front, global central banks are likely to continue to maintain their current ultra-loose monetary and fiscal policies, and the US dollar is expected to remain weak
.

On the fundamental front, the CSPT team failed to finalize the floor price of copper concentrate processing fees for the second quarter of 2021, indicating that the market may be divided on future copper concentrate supply, but it is still difficult to say that it is not generous
.

On the demand side, China's current control of the new crown epidemic is still very successful, and the new energy and new infrastructure sector will continue to pull copper demand, and the next peak season destocking is likely to form a strong support for copper prices, we temporarily maintain the long-term bullish judgment of copper prices, but if the destocking in the second quarter is not as expected, the rise in copper prices may be weaker
than previously expected.