Market sentiment is strong and copper prices continue to rise [SMM copper morning comment]

LME copper prices opened at $9691/mt and closed at $9743/mt in overnight trading, a gain of 2.04%, with the low-end of $9641/mt and the high-end of $9774/mt. Trading volume was 34,000 lots, and open interest stood at 333,000 lots. The most active SHFE 2406 copper contract prices opened at 78900 yuan/mt and closed at 79050 yuan/mt last evening, up 1.78%, with the high-end of 79250 yuan/mt and the low-end of 78200 yuan/mt. Trading volumes stood at 98,000 lots and open interest stood at 210,000 lots. Due to the UK and US metal sanctions on Russia, LME's available inventory has dropped significantly, affecting market sentiment. In addition, Pan Gongsheng, Governor of the People's Bank of China, met with Powell, Chairman of the Federal Reserve, and the two sides exchanged views on issues such as the economic situation of China and the United States, monetary policy, and financial stability. In terms of fundamentals, from the supply side, warehouse receipts began to be gradually released to the spot market, impacting premiums and discounts, but downstream purchases did not increase significantly, and spot supply remained ample. In terms of consumption, copper prices fluctuated higher, which dampened downstream purchasing enthusiasm, and the market maintained on-demand purchasing. On Fundamentals, as of April 18, SMM copper inventories across major Chinese markets stood at 403,500 mt, up 4500 mt from Monday and 220,000 mt higher than the same period last year. Due to the strong market sentiment, copper prices will move at highs in the near future.