News summary
Shanghai copper futures contracts rose 3.3 per cent this weekdragontigernetflix.77%dragontigernetflixThis is mainly due to accelerating industrial growth and cooling inflation in the United States. Sales of new energy vehicles increased by 33% year-on-yeardragontigernetflix.5%, which is good for copper demand.
Newsletter text
[Shanghai copper futures contracts performed strongly this week, with both trading volume and open positions increasing] This week, the Shanghai copper futures market showed a strong sidedragontigernetflixoperating trends. From May 13 to May 17, the total trading volume of the Shanghai copper index increased significantly, reaching 1.606 million lots, an increase of 445,000 lots month-on-month last week. At the same time, total open positions also increased to 634,000 lots, an increase of 31,000 lots month-on-month. The main contract closed at 84250, an increase of 3.77% compared with last week's closing price. [Industrial added value increased steadily year-on-year in April, and many industries showed growth momentum.] In April, the added value of industries above designated size nationwide achieved a year-on-year real growth of 6.7%, and the cumulative year-on-year growth rate from January to April also reached 6.3%. Specific to various industries, many industries such as non-ferrous metal smelting and rolling processing, and automobile manufacturing all recorded significant year-on-year growth, reflecting the acceleration of industrial production. [U.S. inflation and retail sales data fell month-on-month in April, and the market expects an increase in the possibility of the Federal Reserve cutting interest rates.] U.S. CPI increased by 3.4% year-on-year in April, which was in line with expectations and fell slightly from the previous month. Core CPI fell to 3.6% year-on-year, the lowest increase since April 2021. In addition, retail sales in April grew 0% month-on-month, lower than expected. Expectations for the Federal Reserve to cut interest rates have increased due to cooling inflation and retail sales data. [Imports of copper concentrates increased slightly, and supply and demand remain tense] According to data from the General Administration of Customs, China's imports of copper ores and concentrates in April 2024 were 2.348 million tons, a slight increase of 0.1% year-on-year. 1-4 Monthly cumulative imports reached 9.336 million tons, a year-on-year increase of 6.9%. Although port inventories have rebounded slightly, the relationship between supply and demand for ore remains tense, and copper concentrate TC prices continue to fluctuate and weaken. [New energy vehicle production and sales grew rapidly year-on-year, and market share increased] The new energy vehicle market continued to show strong growth momentum in April, with production and sales reaching 870,000 and 850,000 respectively, year-on-year increases of 35.9% and 33.5 respectively. %, market share increased to 36%. The in-depth implementation of policies and the acceleration of corporate innovation will further stimulate market consumption potential. [The macro and fundamental outlook is good, and the technical side shows that Shanghai copper is operating strongly] At the macroeconomic level, major indicators such as industry, exports, employment and prices continued to improve in April, and positive factors continued to accumulate. On the supply side, due to the tight supply of copper mines, the production and sales of new energy vehicles on the demand side grew strongly. Technically, the Shanghai copper market fluctuated within the high range, showing a strong operating trend.
