Shanghai copper rose strongly, adjusting the storage around the pressure level

In terms of the market, on Monday, the value-added tax officially landed, the spot market ticket point turned to 13%, and the high premium returned to normal after half a month, and the copper premium remained around
180 yuan.
With the gradual embodiment of the consumption season, the willingness to receive goods downstream has increased significantly, although the market has picked up, but due to the bullish market of merchants, gradually raising quotations, market transactions are mainly between traders, and the transaction volume has increased
compared with late March.
Due to the reduction of domestic value-added tax, the spot copper tax-inclusive price was also reduced, but the price of London copper was not affected
.
Therefore, since the beginning of the month, the loss of imported copper has rapidly increased, and now the loss is about
1600 yuan per ton.
In the future, import data is expected to decline
significantly.

Domestically, the Caixin China Manufacturing Purchasing Managers' Index (PMI) for March released on April 1 recorded 50.
8, an eight-month high, up 0.
9 percentage points from February, of which the new orders index and the new orders export index both reached new highs, and manufacturing production and demand picked up
.
China's official manufacturing PMI in March was 50.
5%, up 1.
3 percentage points from the previous month and a six-month high
, released by the National Bureau of Statistics.
This is also when the monthly PMI data returns above the tipping point after 3 months
.
In terms of enterprise size, the PMI of large enterprises is 51.
1%.

On the international front, on April 3, the British Parliament passed a bill forcing Prime Minister Ressa May to seek a Brexit extension to avoid a no-deal Brexit on April 12
.
Before the vote, Theresa May met with Labour leader Jerein Corbyn to discuss possible ways
to break out of the Brexit impasse.
On April 1, data released by the US Department of Commerce on Monday showed that US retail sales fell 0.
2% month-on-month in February, compared with an expected increase of 0.
3%, and the previous value increased by 0.
2%, revised to an increase of 0.
7%.

Summary: Market trading was more positive during the week, and the tax reform policy further boosted market electrolytic copper consumption after the landing on Monday, while the macro side
.
Domestically, China's manufacturing PMI and Caixin manufacturing PMI both rose more than expected, indicating that domestic industrial demand and production willingness have improved, and counter-cyclical adjustment is relatively strong
.
Internationally, the news of a breakthrough in Sino-US trade war negotiations has a certain boost to copper prices, and the probability of a no-deal Brexit in the EU has been further reduced, and the negotiations are expected to make progress
.
The weakness of the US economy also provides room for stopping interest rate hikes and possible rate cuts, which has a positive macro impact on Shanghai copper
.
It is expected that Shanghai copper will break further after short-term shock accumulation, focusing on whether to stand at the pressure level of 49600, which is expected to rise
further.