Copper market supply and demand double weak pattern trading performance stalemate game

On the macro front, the US Markit manufacturing PMI in May was less than expected and the value in early April, and the market trading economy fell back in anticipation, under the influence of which the US dollar weakened again, although the nonferrous metal benefited but the driving force weakened; Domestically, the market is concerned about the progress of resuming work and production, and the State Council will once again introduce stimulus policies such as tax cuts, but market expectations are also swayed
by the stock market.

In terms of fundamentals, the resumption of work and production in China is "on the way", internal worries have eased, and demand expectations have begun to recover; The supply side is not so optimistic, and the output of enterprises fell for two consecutive months in April ~ May under the centralized maintenance of enterprises, and it was lower than the same period last year, and the import volume also shrank
.

In terms of inventories, copper social inventories fell sharply this week, supporting the optimism
of demand relative to supply.

Overall, static supply and demand are weak, but the market focuses on the resumption of work and production, dynamic supply and demand are optimistic, and the decline in internal and external inventories has also driven premium quotations higher, and expected trading to pick up, short-term copper prices may still be optimistic
.
However, it should be noted that June enters the rainy season, and the height should not be overly optimistic
.