SHFE copper moves upward, core PCE of the United States cools down as expected by the market [SMM copper morning comment]

LME was closed last Friday due to the Good Friday holiday. The most active SHFE 2405 copper contract prices opened at 72600 yuan/mt and finished at 72610 yuan/mt last Friday evening, up 0.39%, with the low-end of 72510 yuan/mt and the high-end of 72970 yuan/mt. Trading volume was 29,000 lots, and open interest stood at 175,000 lots. On the macro level, the CSPT meetings in the first quarter continued to call for production cuts, which is bullish for copper prices, but there are no detailed plans and data, so we need to pay attention to the actual impact on the market in the future. In addition, the US core PCE cooled down in line with market expectations, which helped the market strengthen its expectations of a US interest rate cut in June. In terms of fundamentals, the supply side is improving, warehouse receipts have increased, and spot goods available decreased. The overall supply is not tight. In terms of consumption, demand is expected to improve before the Qingming Festival if copper prices do not rise. In terms of price, copper prices continue to run at high levels. We need to pay attention to whether the PMI data released this week will cause copper price shocks.