Shanghai copper weak volatility market trading is more cautious

On the industry front, data released by the General Administration of Customs on Wednesday showed that China's unwrought copper imports rose 3.
6 percent in April from March, as demand momentum strengthened
at the start of the peak consumption in the second quarter.
China, the world's largest consumer of metals, imported 405,000 tonnes of unwrought copper and copper including anodes, refined and semi-finished products in April, up from 391,000 tonnes in March, but down 8.
4%
from 442,000 tonnes imported in April 2018.

In terms of the market, Shanghai electrolytic copper spot contracts reported a premium of 10-110 yuan / ton for the month, a flat water copper trading price of 47910 yuan / ton - 47950 yuan / ton, and a premium copper trading price of 47990 yuan / ton - 48040 yuan / ton
。 Sino-US trade negotiations again caused risk aversion to push the dollar higher, overnight copper prices fell below 48,000 yuan / ton again, intraday Shanghai copper in 47,900 yuan / ton a narrow range, the market supply is abundant, copper prices fell after no increase in buying, morning market quotations were basically the same as the previous day, maintaining a premium of 20-110 yuan / ton range, but market consumption is weak, trade market activity is also difficult to improve, good copper down to 90 yuan / ton to improve, flat water copper adjusted to 10 yuan / ton / premium / tons and there is room for low-pressure transactions, and the quotation of wet copper is slightly lowered by 70-50 yuan / ton
compared with the previous day.
Although the current premium performance is deadlocked, with the current characteristics of oversupply, it may be difficult for the premium to maintain stability
for a long time.

In terms of stocks, LME copper stocks stood at 230,075 tonnes on May 07, up 1,800 tonnes
from the previous session.
As of April 30, 2019, copper cathode stocks on the Shanghai Futures Exchange were 211,630 tonnes, down 8,049 tonnes
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

The main 1906 contract of Shanghai copper was weak and volatile during the day, and the market trading was also more cautious
as it approached a new round of trade negotiations between China and the United States.
In the spot market, the Shanghai-London ratio increased, the import profit window was close to opening, and the expectation of an increase in the supply of imported copper in the future market made the holders sell goods more vigorously, and the transaction continued to be weak
.
Although the current premium performance is deadlocked, with the current characteristics of oversupply, it may be difficult for the premium to maintain stability
for a long time.
Operationally, it is recommended that the Shanghai copper 1906 contract can consider selling high and low between 47800-48500 yuan / ton, and the stop loss is 300 yuan / ton
each.