Some of the positives have weakened, and the copper market lacks new impetus

In terms of spot, the price has increased greatly, and the position volume has increased
significantly.
The fundamentals have not changed much, the mine end continues to be tight, TC remains unchanged, the smelter production limit is basically determined, domestic and foreign inventories have fallen sharply, the bonded zone inventory remains unchanged this week, import profits and Shanghai ratio rise, Yangshan copper premium remains unchanged, scrap copper supply continues to be tight, and prices rise
.

Macroscopically, it has basically remained stable, and the rise in copper prices in recent years is mainly affected by the epidemic, the domestic epidemic has been controlled, and the current domestic consumption has picked up
.
In April, the operating rate of terminal cable enterprises exceeded 100%, which exceeded expectations year-on-year, indicating that the relative orders of State Grid and infrastructure have improved significantly, and the operating rate of cable enterprises in May is expected to be high
.
Downstream, especially China's demand, has picked up, so under the expectation of production cuts and demand recovery, there is no need to be too pessimistic
about the market in the second and third quarters.
Europe and the United States are expected to restart their economies in the second quarter, and demand is expected to recover faster than supply
.
Under this support, copper prices remain optimistic
.

Industry News:

1.
In April 2020, the total production of copper cathode by 22 sample enterprises was 694,000 tons, basically stable year-on-year, an increase of 4.
3% month-on-month (666,000 tons after revision in March).

In April, the maintenance plans of Hunchun Zijin, Yunxi, Yuguang Jinlead and Zhongtiaoshan smelters had a certain impact on the output of cathode copper in the smelter, and the supply of raw materials tended to be tight, which also caused certain difficulties
to the normal production of the smelter.
The good side is that domestic sulfuric acid sales are difficult and the backlog of refined copper factories has been better alleviated
.
From January to April, the cumulative production of copper cathode by sample enterprises was 2.
666 million tons, down 3.
7%
year-on-year.
In May, there were maintenance plans for smelting enterprises such as Chalco, Ningde and Chifeng Yuncopper, which would have a certain impact
on the output of cathode copper.
In addition, the epidemic spread severely in South America and Africa from March to April, and the negative impact on domestic smelting production will still be reflected
in May.

According to Peruvian mining industry officials, about 22 large mining companies in Peru are ready to gradually resume production in a few days, and the current Peruvian mining activity is only 35-40% of normal levels, and is expected to rise to 80%
within a month.
Mining companies currently plan to resume operations account for 95%
of Peru's copper production.
Peruvian officials said the combination of the pandemic's near-paralysis of the mining industry and the worrying impact on local companies in the sector has led Peru to expect a 15 to 20 percent
decline in mining exports this year.