Copper prices are generally prone to rise and fall, and global low inventories provide strong support

On the macro front, the domestic manufacturing PMI released yesterday fell by 0.
7 percentage points to 49.
5%, and the rapid spread of the domestic epidemic in March and the escalation of prevention and control may have a negative impact on the economy, which may continue in April, which will also affect copper consumption, thus dragging down copper prices
.
However, under the national stability maintenance policy, the market is optimistic about infrastructure investment, especially in the field of new energy, and the domestic new energy vehicles, photovoltaic and wind power installed capacity data from January to February performed brightly, which significantly boosted copper consumption
.

From a fundamental point of view, the current global copper inventory is still at a historical low, due to the epidemic control, Shanghai area into the volume of storage fell sharply, last week the last period of copper stocks fell 27,400 tons to 102,000 tons, is expected to continue to decline, this week LME stocks quickly recovered to 90,000 tons, but the inventory level is still low, global low inventories to provide strong support
for copper prices.

Overall, China's PMI performance is less than expected, and below the 50 critical point, the government is expected to introduce more positive policies to boost the economy, under the expectation of national stability maintenance policies, the market is optimistic about infrastructure investment, real estate, etc.
, especially in the new energy field performance is eye-catching, boosting copper demand, but before the holiday Shanghai copper consolidation, copper or stable
.
In the short term, copper prices may be dragged down by the epidemic and weak operation, but under the support of low inventories and new energy consumption, copper prices are generally prone to rise and fall
.