Shanghai copper stops falling and rebounds But the strength of the dollar weighed on prices

On the macro front, several Fed voting committees have recently made relatively hawkish remarks, such as FOMC permanent voting committee and New York Fed President Williams said that GDP growth is expected to be around 2% in 2022, and inflation will be close to the 2% target
in 2024.
The US dollar continues to maintain its strong momentum, while copper prices continue to come under pressure
.

In terms of the market, data show that the average price of spot 1# copper in the Yangtze River on May 10 was 72120 yuan / ton, down 480 yuan / ton from the previous month; Premiums 180-220, down 100 yuan/ton month-on-month
.
Due to the continuous expansion of the basis in the spot market in the next month, the premium has shown a trend of thousands of miles, and the market holders have shown the trend of dumping goods for cash, entering the market at the dip downstream, and the trading performance is good under the active trading, and the basis of the domestic low inventory is still expanding, and the premium still has room
to be lowered.

In terms of inventories, as of May 10, London Metal Exchange (LME) data showed that copper stocks fell by 1,350 tons to 167825 tons, a decrease of 0.
80%; On May 10, the warehouse receipts of copper futures in the previous period increased by 101 tons from the previous day to 15,288 tons
.

Overall, the current Fed interest rate hike environment is relatively unfavorable for copper prices, and although there are relatively strong expectations on the domestic demand side, whether such strong expectations can be fulfilled is the focus
of the future market.
Unilateral opportunities may be relatively difficult to grasp for the time being, but you can try to carry out internal and external arbitrage operations
against the background of the relatively pressure of the US dollar and the RMB.