May 11 Copper Market Morning Review

On Friday evening, the LME market was closed for a holiday, but the much-watched US non-farm payrolls data was better than market expectations, promoting the recovery of market risk appetite, domestic nonferrous varieties rose more or less overnight, Shanghai copper futures 2006 contract was reported at 43480 yuan / ton, up 0.
35%.

The global economy is a foregone conclusion to shrink in 2020, with developed countries' manufacturing PMIs falling sharply in April, India's PMI data showing that their economies are near-stagnant, and the United States facing greater pressure from the wave of unemployment, and the global economic outlook is bleak
.
However, for now, the epidemic is still continuing, the negative impact on the global economy may be slowly emerging, the effect of counter-cyclical adjustment policies is not yet certain, and considering that epidemic prevention and control is still a priority for governments, overseas demand may continue to be weak
.

China's exports have recovered in April, but the foreign trade situation is still not optimistic, and it will remain under pressure for some time to come
.
Domestic production recovered rapidly, downstream demand picked up seasonally, and the consumer market still had strong resilience to rebound; The end market is gradually picking up, and the China Association of Automobile Manufacturers said that the auto market finally stopped falling in April; In addition, copper stocks at home and abroad continue to deteriorate, which has strong support
for prices.
However, overseas demand will be weak in May, and Peru's mining industry will begin to resume operations, which may suppress the upside of copper prices, which is expected to be stronger
.