There is a possibility that copper prices will rebound in the short term, but the magnitude is expected to be limited

The US PPI released overnight rose 11% year-on-year, slowing but still high; Powell said that a 50 basis point rate hike at each of the next two FOMC meetings is appropriate, and more action can be taken if the data is worse than expected; The recent plunge in U.
S.
stocks, the dollar index has risen, and fears of global stagflation remain.

Domestic manufacturing PMI and export data were lower than expected, indicating that the epidemic dragged down the domestic economy more than expected; Moreover, the current domestic epidemic is still dragging down copper consumption, and the market sentiment is pessimistic
.

In terms of inventories, LME copper stocks continued to accumulate in April, and the current inventory has increased to 175,000 tons, and the support of low global copper stocks on copper prices has weakened
.
Copper prices are expected to continue their weak run
.

In terms of spot, yesterday's spot market in Shanghai continued to warm up as the basis continued to narrow the basis of the next month, but the overall transaction of the market was still cautious about the high premium, and the transaction first rose and then declined
.
In the morning market, flat water copper was reported in the premium of 130-140 yuan / ton of source market procurement actively, the premium quickly pushed up to more than 150 yuan / ton, the second period before and after the quotation was raised to 180 yuan / ton before the transaction returned to light
.
The overall market favor of good copper is limited, and the overall increase is smaller than that of flat copper, from 150 yuan / ton to 200 yuan / ton
.
Due to the continuous inflow of imported sources, the market has abundant supplies, and the overall price sentiment is general, but with the downstream and other on-demand receipts, it is reported to a premium of 80 yuan / ton
.

Copper prices are under pressure under
macro bearishness.
On the demand side, infrastructure and new energy vehicles are expected to recover strongly supported by policies, but there is still uncertainty
.
In terms of inventory, the trend at home and abroad is differentiated, showing a pattern of internal reduction and external increase, and the current low inventory still gives solid support
to the bottom of Shanghai copper.
In the short term, there is a possibility of rebound brought about by over-fall and demand-side recovery, but the magnitude is expected to be limited, mainly
to build a bottom.