Shanghai copper's performance resists the fall and the room for falling back is limited

This week, London copper rushed back down
.
The average price of LME copper in the first four trading days was 10,342.
5 US dollars / ton, up 7.
5 US dollars / ton per day; Last week's average price was 10362.
25 US dollars / ton, down 19.
75 US dollars / ton compared with the average price last week, down 0.
19%
from the previous month.

On the macro front, U.
S.
inflation was higher than Fed expectations, and the March non-farm payrolls report showed that employment increased by 431,000, less than the expected 490,000, and the unemployment rate fell to 3.
6%, better than the expected 3.
8%, a two-year low
.
At a time of high inflation and a tight labor market, the Fed has accelerated its monetary policy to raise interest rates, and the minutes of its meeting on Wednesday hinted at at least one 50 basis point rate hike to reduce its balance sheet by $95 billion per month
.
Affected by this, the dollar index continued to strengthen, approaching the 100 mark, macro sentiment fermented in the short term, and copper prices weakened under pressure
.

In terms of news, during the domestic Qingming holiday, the Peruvian president declared a state of emergency, as the world's second largest copper producer, Peru's dynamics always affect the global copper market
.
Recently, transportation strikes and protests have broken out in many places in Peru to protest high oil prices and road tolls; Chilean copper mine production fell 7.
5% to 394,700 tonnes in February; The continuous rise of the epidemic situation in Shanghai has made the prevention and control increasingly strict, to the point that spot copper supply has been blocked, demand has weakened, showing a weak state of supply and demand
.

In terms of inventories, Shanghai copper inventories rebounded slightly this week, increasing by 3,460 tons, or 3.
72%, to 96,581 tons
.
London copper stocks rose sharply this week, accumulating an increase of 9,800 metric tons to 103775 metric tons, a cumulative increase of 10.
43%.

On the whole, the impact of macro high inflation and interest rate hikes is contradictory, but the bulk is still more, overseas supply-side disturbances persist, the domestic epidemic is still operating at a high level, the form is grim, spot demand due to the epidemic performance is average, but copper prices have resisted the decline, and the room for decline is limited
.