Shanghai copper trend is strong, macro risks cannot be ignored

In terms of the external market, the trend of London copper this week is stronger
.
The average price of LME copper in the first four trading days was 5383.
75 US dollars / ton, up 51.
25 US dollars / ton per day; The previous week's average price was $5224/ton, up 3.
06%
month-on-month.

In terms of the market, in the week of May 22, domestic spot copper prices fluctuated
.
The average price of Yangtze River nonferrous metal network 1# copper was 43918 yuan / ton, up 72 yuan / ton per day, and up 0.
83% on the weekly line; The average price of the previous week was 43456 yuan / ton, up 462 yuan / ton compared with last week, up 1.
06%
from the previous month.

In terms of inventory, Shanghai copper stocks have deteriorated sharply this week, falling by 33,065 tons to 175825 tons, a decrease of 15.
83%.

London copper stocks continued to deteriorate this week, with a cumulative decrease of 6,975 metric tons to 271775 metric tons, a cumulative decrease of 2.
50%.

Domestic industrial data has improved, and production demand has gradually improved
.
Stimulated by national policies, the pace of grid investment has accelerated, and it is expected to continue its strong momentum in May
.
At present, the start of downstream enterprises has basically returned to normal levels, terminal demand is also warming, the overall consumption performance is still strong, and the continuous destocking has driven spot to maintain premium
.

The impact of the epidemic has gradually eased, and the average operating rate of industrial enterprises above designated size in China has basically reached a normal level
.
Market expectations for the reopening of the global economy are strong, the Fed is ready to take all necessary measures to help the United States boost the economic outlook, many countries have promised to introduce more stimulus measures to boost the economy, market risk appetite has recovered, and hopes for economic recovery have increased
.

At present, the deepening concerns related to the Sino-US trade relationship may be a drag
on the economic rebound.
With the gradual resumption of work and production in various parts of the country, economic activity is accelerating its recovery, and the main economic data shows positive changes
.
The current market is still in the peak consumption season, the warming of the terminal market has brought a certain increase in copper demand, in addition, smelting may still be disturbed by ore supply in the future, and inventories are still rapidly decreasing
.
However, the outlook for overseas demand is not optimistic, and macro risks cannot be ignored, and copper prices are expected to fluctuate next
week.