It is the first day of 13% tax rate today (April 1). The expected large inventory sell-off did not occur, but warrants remained high. SX-EW copper supply shortage suggested the closing of profitable import window and a slight improvement of downstream consumption.

Spot market was relatively stable on the first day of the new tax, but futures market opened sharply higher on the back of a recovery in macro data over the weekend. In addition, stock market surged in recent days, lifting market sentiment. No negative news on trade frictions between China and the United States were head in the market. Short-term market sentiment won’t last long without significant improvement in fundamentals. Changes in consumption should be closely watched.

Spot copper was offered at 49,080-49,370 yuan/mt in Shanghai, down 560 yuan/mt and at a discount of 40 yuan/mt to a premium of 90 yuan/mt against 1904 contract. 有色金属展-铜材展-2019年广州国际有色金属工业（铜业）展览会 -2019 China(Guangzhou)Int’l Non-Ferrous Metal（Copper）Exhibition -Non-Ferrous Metal exhibition, 2019 Non-Ferrous Metal exhibition, Non-Ferrous Metal expo, 2019 Non-Ferrous Metal expo, Copper exhibition, Copper expo, 2019 Copper exhibition, 2019 Copper expo, China Copper exhibition, China Copper expo