Shanghai copper rushed back down this week, bottomed out near the weekend and stabilized, and the volatility of copper
prices expanded during the week due to fluctuations in other varieties and the hawkish Fed.
Weekly spot copper rose by about
In terms of the market, in the week of April 8, the high level of domestic spot copper prices fell
The average price of Yangtze River non-ferrous metal network Yangtze River spot 1# copper was 73940 yuan / ton, up 30 yuan / ton per day; The average price of the previous week was 73862 yuan / ton, up 78 yuan / ton compared with last week, up 0.
from the previous week.
On the macro front, the release of the minutes of the Fed's March meeting showed that central bank policymakers are increasingly concerned about the expansion of inflation, the hawkish Fed said that it will shrink its balance sheet by $95 billion per month, and the rate hike will rise to 50bp in May, and the cumulative rate hike during the year may reach a record high of 250bp, such hawkish operations severely suppress risk asset prices
In terms of fundamentals, the domestic production capacity correction, a total of 56 sample enterprises were investigated, with a total production capacity of 13.
525 million tons, the output of refined copper rods in March was 718,300 tons, an increase of 39.
67% month-on-month and a year-on-year decrease of 3.
81%, and the utilization rate of refined copper rods was 62.
53%, up 12.
22% month-on-month and down 7.
79% year-on-year; In March, the utilization rate of refined copper rod capacity increased month-on-month, but compared with the same period last year, the logistics were not smooth, resulting in the obstruction of the consumption side, and in the second half of the epidemic in Shanghai, the purchase of electrolytic copper raw materials was restricted, some enterprises entered the state of production and maintenance, copper rod manufacturers started to decline, and some downstream cable companies sought sources of goods outside the province, and cross-regional purchases were frequent
The spot market is actually priceless, the downstream is afraid of heights and caution, the enthusiasm for procurement is still weak, the recovery after the holiday is general, the buyers and sellers are deadlocked, and the overall demand is weak
In terms of stocks, London copper stocks continued to rise by 9,800 tons to 103775 tons this week; Shanghai copper stocks edged up by 3,460 tonnes to 96,581 tonnes; But it is still at historically low inventories
Overall, the Fed's tightening monetary policy has suppressed metal demand, and copper prices have come under pressure
Internal and external inventories are differentiated, but still at the historical low level of inventory support unchanged, the spot market is afraid of heights and cautious wait-and-see, demand is weak, copper prices are weak