Copper prices continue to fluctuate in the short term, and the epidemic has repeatedly aggravated volatility

On the external side, London copper was weak last week
.
The average price of LME copper in the first four trading days was 5233.
75 US dollars / ton, down 17 US dollars / ton per day; Last week's average price was 5182.
2 US dollars / ton, up 0.
99%
from the previous month.

On the macro front, China's main economic indicators improved in April, but the overall economy has not yet returned to the normal level
of previous years.
Fed Powell said it was not considering negative interest rates for the time being, but was pessimistic about the economy, warning that economic growth may remain weak
in the future.
Under the influence of the epidemic, the global economy is facing great uncertainty, and the challenges facing China's economy are also increasing
.

In terms of the market, in the week of May 15, the center of gravity of domestic spot copper prices shifted
downward.
The average price of copper in Yangtze River nonferrous metal network 1# was 43456 yuan / ton, down 58 yuan / ton per day, and down 0.
66% on a weekly basis; The average price of the previous week was 43160 yuan / ton, up 296 yuan / ton compared with last week, up 0.
69%
from the previous week.

Domestic demand rebounded well, refined copper destocking continued, wire and cable operations remained high, and the consumer market is gradually recovering
.
However, overseas demand recovery has been slow, and LME copper stocks have surged by more than 20% during the week, indicating weak demand and limited support from basic prices
.
The agency expects a large surplus in the global copper market this year, with consumption falling more than supply
.

On the news front, Peru's mining industry will begin to resume operations, but it will still be difficult to restore production capacity on a large scale, and the impact of the epidemic on Chile may be concentrated in the second quarter
.
However, the support for prices from the disturbance at the mine end is gradually weakening, scrap copper imports may gradually recover, and the inventory in the bonded zone will return slightly under the opening of the import window
.

Looking ahead, the market hopes that more stimulus measures will be introduced by economies around the world, and countries will support the economy with fewer
macro bearish factors.
At present, overseas economies are reopening, and many countries have begun to ease lockdown measures, which may bring about a rebound
in risk appetite.
China's overall economy in April continued the momentum of recovery and improvement since March, with solid progress in resuming production and work, production demand gradually improving, and industrial growth turning positive year-on-year, but the recovery of the production side was slightly faster than that of the consumer side
.
At present, there is a relatively large uncertainty in external demand, and the epidemic has repeatedly aggravated copper price fluctuations, but as Europe and the United States restart their economies, China's export market may recover, and copper prices are expected to continue to fluctuate
.