The market atmosphere has improved, and copper prices may be mainly volatile

On the last trading day of the month, Shanghai copper fluctuated in a narrow range in the morning, and the market rose slightly in the afternoon, closing up 0.
53%.

The US dollar index is high, LME copper stocks are still increasing, but the market atmosphere is warm, and the domestic stable growth expectation is strong, and Shanghai copper is strong
.

On the macro front, the dollar index remained elevated
due to economic growth concerns and the hawkish attitude of the Federal Reserve.
However, the stock market atmosphere in the intraday market has rebounded significantly, and industrial products have risen generally
.
On the economic data front, the preliminary real GDP annualized qqd of the US unexpectedly recorded -1.
4%.

However, in terms of some of the breakdown data, it is still not terribly bad
.
The dollar index remained strong, while the three major U.
S.
stock indexes also performed well
.
On the other hand, the core PCE price index in the United States recorded 5.
2% in the first quarter, lower than the expected 5.
4%, but higher than the previous reading, and copper prices remained relatively stable
in the process.

In terms of the market, the price of Yangtze River non-ferrous metal network 1# electrolytic copper was 73990-74050 yuan / ton, the average price was 74020 yuan / ton, down 70 yuan / ton from the previous trading day, and the 2205 contract was reported up 370 liters and 430 yuan / ton
.
The spot market traded generally, and the premium rose by 55 yuan / ton
from the previous trading day.
At the end of the month, the downstream reserve warehouse basically ended, the spot transaction was relatively light, and the intraday premium was gradually reduced, but the circulation of goods was limited, and the reduction was not large
.
The mainstream of flat water copper was traded around 310, and the price difference between the liter copper report was small and that of flat water copper was about 70 yuan, and wet and poor copper were rare
.

In terms of stocks, LME copper stocks briefly deteriorated at the beginning of the week and then increased sharply, with the latest stocks climbing above 150,000 tonnes, the highest
since late October.
The inventory of Shanghai copper warehouse receipts continues to deteriorate, and the weekly copper inventory of the previous period will continue to decline
.
The continued accumulation of LME copper stocks in April also put some pressure on copper prices, with LME stocks accumulating to 150,000 tonnes
this week.
However, due to the greater pressure caused by the epidemic on the domestic economy, under the tone of stable growth, subsequent countries may introduce more stimulus policies to support the economic consumption after the epidemic
.

On the eve of the domestic May Day holiday, downstream terminals are expected to have a wave of stocking demand, or support copper prices, but the Fed's interest rate hike and balance sheet hawkishness over the weekend suppressed
prices.
On the whole, market uncertainty is still high, and the epidemic situation may improve in May, and copper prices are expected to be mainly volatile
.