Macro atmosphere is uncertain Shanghai copper may continue to fluctuate next week

This week, the center of gravity shifts
downward.
The average price of LME copper in the first four trading days was 9003.
5 US dollars / ton, down 102.
75 US dollars / ton per day; Last week's average price was 9243.
4 US dollars / ton, down 2.
60%
from the previous month.

In terms of the market, in the week of March 5, the high level of domestic spot copper prices fell
.
The average price of copper in Yangtze River nonferrous metal network 1# was 66672 yuan / ton, down 740 yuan / ton per day, and down 5.
40% on the weekly line; The average price of the previous week was 68280 yuan / ton, down 1608 yuan / ton compared with last week, down 2.
36%
from the previous week.

In terms of inventories, London copper stocks continued to rise this week, accumulating an increase of 2,800 metric tons to 79,025 metric tons, a cumulative increase of 3.
67%.

Shanghai copper inventories continued to climb this week, increasing by 15,067 tons to 163025 tons, an increase of 10.
18, and the cumulative increase in the last five weeks reached 144.
91%.

On the macro front, China's manufacturing industry has remained above the boom-dry line for 12 consecutive months, but activity has declined, and the pace of production and demand expansion has slowed down
.
Manufacturing activity in Europe and the United States also maintained its expansion, with good manufacturing conditions easing the impact of lockdown measures on the economy, global vaccine rollout, and economic recovery expected to lead to demand recovery
.
However, the dollar index and US Treasury yields have continued to climb recently, and the Fed has not given a "bailout" signal, which has put pressure
on commodity markets.

Previously, prices rose too fast, and rising production costs inhibited the start of
real consumption.
The inventory in the previous period continued to accumulate, and there was still greater pressure
to destock.
Recently, due to the rise in raw material prices, some downstream enterprises are afraid of high and reduce the operating rate, and there has not been obvious replenishment behavior, and the prices
of various home appliances such as air conditioners have increased.
Copper prices retreated
from highs this week as some of the fundamental factors underpinning industrial metals began to fade, macro sentiment disturbed the market, and the agency said.
In the future, the demand of the terminal market is more positive, and the consumption expectation of the peak season in the second quarter still exists, but the macro atmosphere is uncertain, and copper prices are expected to continue to fluctuate
next week.