Fundamentals show signs of weakness and the copper market rushes back down

Back in the copper market, domestic copper stocks fell sharply by 33,000 tonnes last week, but as scrap began to arrive at the end of the month, the upward momentum in the market began to run low
.
Last week, the refined waste ratio returned to 1,000 yuan, indicating that the supply of scrap copper began to increase, and the domestic refined copper warehouse has been sharply reduced since the end of March, of which scrap copper imports fell by 200,000 tons is one of
the main reasons.
The window for refined copper imports narrowed
.
Technically, the tendency to $5500 is a huge resistance level for copper rebound, and it is likely to enter the correction phase in the future
.

Industry News:

1.
Canada's chief executive of Hudbay Minerals said Thursday that it expects to delay the start of mining
at the Constancia copper mine in Peru.
The company said in February that it expected to start mining the Pampacancha satellite copper deposit by the end of 2020, but now to contain the coronavirus pandemic
.
The company expects to invest $70 million in the copper deposit this year, with mining starting
in early 2021.

2.
Chile's Antofagasta said it managed to maintain its production at normal levels despite restrictions imposed by the coronavirus pandemic that temporarily reduced the number of workers in Chile, the world's largest metal producer
.
Ivan Arriagada, chief executive officer of the company's London operations, said we saw refined copper demand pick up after falling in the first quarter, and we expect an oversupply in the refined copper market this year, but the situation remains volatile
.

The two sessions did not have a more favorable policy than expected for the metal market, coupled with the intensification of Sino-US contradictions, market sentiment began to weaken, and industrial products began to decline
overall last Thursday.
From a fundamental point of view, the speed of refined copper destocking has slowed down significantly, the cost performance of scrap copper continues to rise, downstream consumption has gradually gone through the peak season, copper fundamentals have signs of weakening, short-term copper prices are expected to be dominated by weak shocks, bulls recommend leaving the market, and gradually switch to bearish ideas in the late second quarter, vigilant against the risk
of overseas ore supply disturbance.