Global copper short-term outlook April 2019

April started on a positive note with prices breaching $6500/t over the first trading days of the month. Better-than-expected GDP data out of China pushed copper to a 9-month peak mid-month before rising LME inventories and deteriorating macroeconomic data in the rest of the world curtailed the rally. Slowing manufacturing sectors continued to be a theme through Q1 2019, with many countries in Europe dropping into PMI contraction whilst USA results deteriorated towards 50 points. First-use copper demand in China gradually picked up following the introduction of stimulus packages by the Chinese Government in March. Meanwhile, in the concentrate market, momentum that had built up in market activity ahead of CESCO Week tapered off considerably, with traders reporting relatively quiet trading conditions thereafter. Nevertheless, spot TCRCs continued to trend lower for the month. With tightness in the market for clean material, we have seen notably sharp terms agreed by merchants.