The market is long and short entangled, and the main force of Shanghai copper fluctuates at a high level

In the external market, London copper opened at 5685.
5 US dollars / ton, after the opening of the center of gravity followed crude oil slowly upward, the Asian market once rebounded 5717.
5 US dollars / ton, and gradually gave up the gains in the afternoon to weaken.

Entering the European and American session, OPEC production reduction meeting is underway, Saudi oil minister believes that there is no need to expand the scale of production cuts, U.
S.
crude oil fell sharply when it heard the news, London copper turned downward, quickly broke through the daily moving average, tested down 5672 US dollars / ton, as of 18:15, London copper reported 5683 US dollars / ton, down 20 US dollars / ton
.
In terms of crude oil, it is gratifying that the original oil producers have reached an agreement on extending the production cuts, which is still positive, and continue to pay attention to the trend of US crude oil, which is expected to hold above $50 / barrel, which also supports base metals
.

On the macro front, Moody's downgraded China's sovereign credit rating to A1 from Aa3 and upgraded its outlook from "negative" to "stable", the Ministry of Finance responded that its approach based on "pro-cyclical" ratings was inappropriate, and Xinhua later cited a number of analysts to prove that its rating was miscalculated
.
In addition, the total number of existing home sales in the United States in April was 5.
57 million annualized, less than the expected 5.
65 million, and the latest Federal Reserve minutes hinted at a possible interest rate hike in June and reached a consensus on reducing its $4.
5 trillion balance sheet, which is expected to begin later this year
.

In terms of the market, Shanghai copper flat finishing, the last second trading day before the small long holiday, the willingness of holders to ship increased, the current copper discount gradually enlarged, traders further reduced operations, downstream on-demand delivery, resulting in the price difference between premium copper and flat water copper, the price difference between the source of bills in the current month and the source of bills next month is still 30 yuan / ton, and the transaction gradually shows a pattern of
oversupply as the festival approaches 。 In the afternoon, copper futures pushed up again, the willingness of holders to exchange cash was further strengthened, and they took the initiative to expand the discount in order to seek transactions, and reported a discount of 100 yuan / ton - 50 yuan / ton for the contract of the month, the transaction price of flat water copper was 45800 yuan / ton - 45900 yuan / ton, and the transaction price of premium copper was 45820 yuan / ton - 45920 yuan / ton
.

On the industrial front, the Freeport-owned Copper Miners Association in Indonesia made it clear that the strike will continue until June 30, after the miner began a strike
on May 1 to protest layoffs.
The company said that production is still on target, and copper concentrate is also being shipped
as scheduled.

Overall, the global macroeconomic recovery is relatively moderate, the tightening of funds and the joint supervision of the financial industry have been putting pressure on the copper market, the downstream has always had limited access to the market during the consumption season, and the supporting effect of terminal consumption on copper prices will gradually weaken with the end of the consumption season, maintaining a bearish idea in the medium term, and paying attention to the follow-up impact
of Moody's downgrade of China's credit rating in the short term.