The center of gravity of Shanghai copper continues to rise, and the market risk aversion still exists

This week, the center of gravity of London copper has risen
by a breakthrough compared with last week.
London copper from the beginning of the week around 4840 US dollars / ton to stabilize the bottom, standing on the 4900 US dollars / ton mark in one fell swoop, after breaking through the 20-day moving average, continued to rise and gradually stood on the 20-day moving average, the center of gravity remained stable around 5000 US dollars / ton, the highest during the period to 5114 US dollars / ton, the Western Easter LME closed on Friday, the four trading days of the week rose 3.
92%.

Market optimism about the easing of the global epidemic has increased, the growth of the epidemic in the United States has continued to rise, but the growth rate has slowed down, and the global economy has taken various measures to cope with the economic recession caused by the epidemic, and the Japanese government has launched a $990 billion economic stimulus plan, and the market panic has subsided; Secondly, due to the impact of the epidemic during the week, the disturbance in overseas mines continued to increase, the epidemic in South America had a greater impact on the supply side, Chile and Peru copper ore and refined copper transportation were difficult, while Mexico also declared a state of emergency during the week, Australia, the Philippines, Malaysia, Indonesia and other places have been affected to varying degrees, which has supported
copper prices.

During the week, Chile, Peru, Mexico and other mines continued to disrupt resulting in transportation difficulties in shipment, causing the market to continue to worry about the domestic smelting production supply side, boosting bulls' confidence, superimposed on the domestic resumption of work gradually improved, copper processing end can basically maintain a level of 90% of the resumption of work, coupled with this week is also a favorable policy in China, the central bank for the first time in 12 years to reduce the excess deposit reserve ratio, the central bank announced that from April 7 the excess deposit reserve ratio of financial institutions in the central bank from 0.
72% It was lowered to 0.
35% to promote banks to better serve small and medium-sized enterprises, and many favorable information in China guided the Shanghai copper week to continue its upward trend
.

In terms of spot, the premium showed a downward trend
this week.
At the beginning of the week, the willingness of the holders to raise the price was still strong, and the quotation of good copper was 130-160 yuan / ton, but the buyer was afraid to wait and see, and the transaction was light
.
Due to the deadlock between buyers and sellers is difficult to open, the transaction is fruitless, as the market continues to rise, the holder gradually shows a high level of cash sentiment, actively lowered the quotation, good copper adjusted to 80-90 yuan / ton in the case of the transaction situation has not significantly improved, the price reduction space still exists, the premium performance is almost cut
。 The copper price close to 41,000 yuan after the week further strengthened the willingness of holders to exchange cash, the premium fell rapidly again, the downstream market participation was limited, the spot market was afraid of heights and cautious risk aversion was difficult to dissipate, copper prices rose sharply on Friday, and the spot has fallen to a premium of 30-60 yuan, which has been steadily recovered under the low price receipt of traders for long-term order delivery
.