U.S. PMI fell in April, copper prices are expected to be relatively strong [SMM copper morning comment]

LME copper prices opened at $9672.5/mt and closed at $9728/mt overnight, down 1.27%, with the highest of $9735/mt and the lowest of $9627/mt. The trading volume was 28,000 lots, and open interest stood at 335,000 lots. The most active SHFE 2102 contract prices opened at 77930 yuan/mt and finished at 78630 yuan/mt overnight, down 0.29%, with the low-end of 77650 yuan/mt and the high-end of 78650 yuan/mt. Trading volume was 80,000 lots and open interest stood at 196,000 lots. On the macro level, copper prices have retreated due to recent profit-taking and Iran's recent contacts with the United States to seek to resume negotiations on the implementation of the Iran nuclear agreement. The tension in geopolitical conflicts has eased to some extent. In terms of fundamentals, from the supply side, there were fewer arrivals this week and the supply increase was limited. In terms of consumption, copper prices fell sharply yesterday, leading to an increase in downstream consumption but to a limited extent. If copper prices continue to fall, consumption is expected to continue to pick up. On the whole, the capital level is still relatively strong, but the initial value of the US manufacturing PMI in April was 49.4, a four-month low, which is bullish for copper prices. It is expected that copper prices will remain relatively strong.