Inventories show a downward trend, and copper upward momentum strengthens

Market focus: (1) The People's Bank of China lowered the RRR by 1 percentage point to small and medium-sized banks, and decided to reduce the interest rate on excess deposit reserves from 0.
72% to 0.
35%.

(2) Chilean copper miner Antofagasta said Monday that it has suspended its Los Pelambres Expansion project in Chile, which accounts for nearly half
of its total copper production, for about 120 days due to the outbreak of the virus crisis in Chile.

Spot analysis: On April 7, spot 1# electrolytic copper was quoted at 40800-40860 yuan / ton, with an average price of 40830 yuan / ton, a daily increase of 1090 yuan / ton
.
Copper rebounded sharply coupled with high rise underwater buying hesitation, traders still tend to receive goods at a low price, but holders generally do not have a significant willingness to reduce prices and promotions, sellers remain strong and difficult to have room for price reduction, on the first day after the holiday, supply and demand continue to tug into war
.

Warehouse receipt inventory: Shanghai copper warehouse receipts totaled 197,220 tons on Tuesday, a daily decrease of 6,186 tons, down for 14 consecutive days; On April 6, LME copper stocks were 217475 tons, down 1,050 tons per day, down 13 consecutive days
.
As of the week of April 3, the previous Shanghai copper inventory reported 332435 tons, a weekly decrease of 31,605 tons, a decline of three consecutive weeks
.

Main positions: the top 20 long positions of Shanghai copper main 2005 contract were 62234 lots, minus 8524 lots per day, short positions were 74025 lots, daily minus 576 lots, net short positions were 11791 lots, daily increase of 7948 lots, long and short were reduced, net space increased
.

The US non-farm payrolls data for March was much weaker than expected, risk aversion led to the tightness of US dollar liquidity, and the US dollar index performed strongly, putting pressure
on copper prices.
However, the epidemic in Europe showed signs of inflection point, and the People's Bank of China lowered the RRR and cut excess reserves to small and medium-sized banks, and the market sentiment has warmed up; In addition, the epidemic has led to the epidemic in the production of copper miners, and the supply disruption of copper mines has increased; As well as Shanghai copper inventories showing a downward trend, and the decline is expanding, copper prices can strengthen
upward momentum.
In terms of spot, traders still tend to receive goods at a low price, but holders generally do not have the intention to significantly reduce the price promotion, and it is difficult for sellers to maintain a strong price limit
.
Technically, the daily MACD red column increment of the Shanghai copper main 2005 contract broke through the 40,000 mark, and the short-term shock is expected to be strong
.