Shanghai copper runs at a low level and market uncertainty rises

The United States last weekend new confirmed surge in the skyrocketing, market liquidity panic intensified, Monday Shanghai copper opened two minutes to touch the limit 35,300, then rebounded to narrow the decline, the Federal Reserve launched unlimited QE (quantitative easing) monetary policy to support the bailout, the large release of water more than the 08 financial crisis period, market liquidity has been significantly alleviated, VIX panic index pullback, safe-haven asset gold rose, European and American stock markets stopped falling and stabilized, copper prices rebounded to around
39,000.

In terms of the epidemic, overseas is still in the outbreak period, the United States has exceeded 10,000 new cases for four consecutive days to become the country with the most patients in the world, and as of 3 pm on Friday, the cumulative number of confirmed cases overseas has exceeded 440,000; Due to factors such as the continuous increase in confirmed cases introduced abroad, China decided to suspend the entry of some foreigners from the 28th; The number of jobless claims in the United States exceeded 3 million this week, and the shutdown of factories in various countries gradually increased, and global supply chains and trade were affected
.
The global economy has entered a period of recession, and copper prices are weak in the medium term
.

The market is afraid of the decline repair, the bottom buying increases, the transaction atmosphere continues to warm, and the good copper rise discount rises to about
80 yuan along the way.
During this period, wet copper was particularly favored, and there were many
sweepers.
In addition, due to import restrictions, the inventory of domestic cargo merchants continues to decrease, and the willingness to raise prices is strong
.
However, the inversion of the monthly contract and the main contract on Friday, indicating that the market is bullish on copper prices in April, but remains pessimistic
about the later trend.

In terms of import profit and loss, the window continued to close this week, the gap narrowed to around 140 yuan / ton, liquidity panic was released, investor funds flowed out of the US dollar, and the US dollar index pulled back
at a high level.
However, due to the impact of the epidemic, global import and export trade has been hit hard, import sources are restricted, and inventories in the previous period are expected to decrease
.

In order to fight the epidemic, countries around the world have imposed long-term lockdowns, exacerbating fears of global recession, igniting concerns about metal demand, increasing market uncertainty, and copper prices may fluctuate more violently
.