Demand does not improve, Shanghai copper is weak and volatile

In terms of industry, data show that China's electrolytic copper production in April 2019 was 706,500 tons, down 5.
94% month-on-month and 4.
24%
year-on-year.
The cumulative output from January to April was 2.
9134 million tons, a year-on-year increase of 2%.

The output in April was slightly higher than the forecast in the previous period, mainly because the actual output of Yanggu Xiangguang, Guangxi Jinchuan and Dongying Fangyuan in April was higher than the original plan
.

In terms of the market, the contradictions and conflicts between China and the United States have intensified again, causing market concerns, London copper continued to fall in a broken position, domestic Shanghai copper performance resisted the decline, intraday Shanghai copper fell to 47600 yuan / ton first-line sorting, copper prices did not see a clear stop signal, the market fear of decline sentiment, and the Shanghai ratio rose, import profit window opened, so that holders were forced to increase the selling force, the market cash willingness is strong and obvious
。 The morning market quotation premium 10-100 yuan / ton, after the initial difficulty of the transaction, immediately showed the trend of price reduction and cash, flat water copper flat water above the transaction is weak, there is a discount of 10 yuan / ton quotation, and there are still some holders can increase the discount strength, good copper quotation premium 80-90 yuan / ton, good copper and flat water copper have price pressure space, wet copper source proportion is still small, maintain stability in the discount 70-discount 50 yuan / ton
.
Copper prices fell, downstream fell only to maintain rigid demand, traders did not see speculative bargain receipts
.
Supply continues to be abundant, demand does not improve, macro bearish pressure makes the market generally cautious, and the hindrance of transactions makes it difficult to sustain
spot discounts.

In terms of stocks, LME copper stocks were 227,200 tonnes on May 08, down 2,875 tonnes
from the previous session.
As of April 30, 2019, copper cathode stocks on the Shanghai Futures Exchange were 211,630 tonnes, down 8,049 tonnes
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

The main 1906 contract of Shanghai copper fluctuated weakly during the day, as Sino-US trade relations once again showed tensions, and the market's risk aversion increased
sharply.
In the spot market, the downstream decline only maintained rigid demand, and traders did not see speculative bargain receipts
.
Supply continues to be abundant, demand does not improve, macro bearish pressure makes the market generally cautious, and the hindrance of transactions makes it difficult to sustain
spot discounts.
Operationally, it is recommended that the Shanghai copper 1906 contract can be considered in the short term
.