The market trading atmosphere is light, and the price of Shanghai copper is mainly volatile

The RRR cuts and interest rate cuts during the week were less than market expectations, with the central bank deciding to cut the reserve requirement ratio by 0.
25 percentage points, while LPR remained unchanged
for three consecutive months.
The Fed's signal of a 50 basis point rate hike in May was reinforced
again.
Last week, the US index broke 100
intraday for a week.
Many countries have released monetary tightening policy signals
under high inflationary pressure.
The IMF lowered its global economic growth forecast, and the Fed's latest Beige Book showed moderate economic growth in the United States from February to April
.
Fears of a slowdown in the global economy weighed on
copper prices.

The latest data from the World Bureau of Metal Statistics (WBMS) shows that the copper supply gap will be further amplified
this year.
At the same time, the global mining countries represented by South America have seen a series of large-scale protests, and the supply support has strengthened
again.

Russia and Ukraine still failed to make breakthroughs
this week.
European and American sanctions are still increasing, energy and food crises have been repeatedly hyped, and oil prices remain high
.
The damage to the supply chain is difficult to repair, and high inflation is still the underlying logic
of copper prices to remain high.

In terms of the market, spot copper fell 360 yuan last week, the epidemic in Shanghai continued to be closed, but some enterprises began to resume production, on Tuesday there was news that electrolytic copper stocks in Shanghai will be able to flow out, supply eased, the premium after the month all the way down, the market trading atmosphere is light, as the May Day holiday is approaching, there is a demand for early replenishment downstream in the near future, and the premium will stabilize
next week 。 In terms of import profit and loss, due to the increase in the Fed's hawkish interest rate hike expectations, the yield of government bonds rose, the interest rate differential between China and the United States gradually narrowed or even inverted, the US dollar stood at the 100 mark, the RMB depreciated sharply for several days, and the import profit window reopened, now maintained within 100 yuan
.

Overall, copper prices stood above 74,000 during the week, basically confirming the effective existence
of the 74,000 support level.
It is expected that Shanghai copper prices will remain high and volatile
above 74000.