Shanghai copper high range oscillation, it is difficult to have a trend turn in the short term

On the macro front, the Fed sent another hawkish signal, with Fed Chairman Jerome Powell saying that the Fed expects a 0.
5 percentage point rate hike in May to curb inflation, and he said a similar rate
hike may be required thereafter.
Fed Chairman Jerome Powell hawkished, the dollar index rose, putting pressure on risk assets
.

In terms of the market, Shanghai Metal Network 1# electrolytic copper quotation 75060-75120 yuan / ton, the average price of 75090 yuan / ton, up 150 yuan / ton from the previous trading day, the 2205 contract reported up 280-340 yuan / ton
.
The spot market transaction picked up slightly from the previous day, and the intraday flat level demand rebounded to support the rebound of the premium, with the mainstream of flat water copper rising by around 250 yuan in one period, and the decrease in market supply in the second period rising to about 280 yuan
.
The price difference between flat water copper and good copper narrowed, but there were still not many good copper reports, and wet copper and poor copper were rare
.

In terms of stocks, LME copper stocks continued to recover, adding another 1,700 tonnes yesterday, and the inventory level rose above 130,000 tonnes, continuing to update a five-and-a-half-month high
.
Recently, the inventory of Shanghai copper warehouse receipts has declined continuously, and from the perspective of domestic demand, the domestic spot premium has remained stable above 200, the transportation supply has eased, and the downstream has shown rigid demand
.

In terms of news, the supply-side disturbance in the copper market has increased recently, and companies such as Antofagasta, Anglo-American Resources, and Freeport McMoran have lowered production
.
In addition, Peru said it would declare a state of emergency near Southern Copper's Cuajone copper mine in the face of growing protests
against mining companies.
For the mine end, analysts said that there will be fewer new overseas projects in 2022, mainly based on compound expansion, and at the beginning of the year, relevant agency statistics showed that the increase in overseas smelters in 2022 will be about 400,000 tons, but whether it can reach production still needs follow-up tracking data, after all, there are many
uncertain factors.

Overall, copper prices have not yet left the shock sorting range of the past half year
.
In the second quarter, supply and demand were tight under the baseline assumption, and if the impact of the epidemic increased, consumption growth would be revised downward and supply and demand would turn into surplus
.
The probability of inventory accumulation is small, and it is expected that it will be difficult to see a trend turn and a high range of oscillations
.