The market hopes that policy will continue to relax and a sharp correction in the US dollar will stimulate metals to continue to rise.

On Tuesday, May 4th, the US trade deficit hit a record high and copper prices consolidated. The first-year index rose and fell on Wednesday, May 5th, and the copper price hit the $10000 mark weakly. The market's risk appetite improved on Thursday, May 6th, with copper prices successfully holding the $10000 mark. On Friday, May 7th, the non-farm payrolls index fell below market expectations, the dollar index fell sharply, and copper prices rose strongly to hit a high of $10400. In the short term, Comex copper and LME copper net bulls rebounded, stacking weaker-than-expected employment data, with market expectations that the US government would be more likely to pass an infrastructure plan, and a correction in the dollar index supported copper prices to remain high.

Goldman Sachs also continues to be bullish on the future of industrial metals. For copper, although copper prices are now rising strongly, breaking through $10000 / metric ton, the highest level in nearly a decade, Goldman Sachs remains optimistic about copper prices, with a short-term target of $11000 / metric tonne. Copper prices are expected to rise to $14000 / metric ton in 2024. And believes that the present is only the beginning of a structural bull market. Goldman Sachs estimates that from the second quarter of 2021, the global copper market will gradually move towards a larger gap between supply and demand, bringing the already low global copper pool to a critical level by the end of the year. Goldman Sachs expects the market to have a shortfall of 201000 metric tons by 2022 and inventory shortages will continue to support prices. Goldman Sachs said that in the Chinese market, the copper market seems to have shrugged off its dependence on China's macroeconomic drivers and achieved a rise, while demand growth outside China is also very strong, with European PMI and US new home sales indices being the main drivers of current prices.

Notably, Goldman Sachs believes that long-term demand from green infrastructure may be the main driver of copper prices, similar to that of nickel in recent years. Demand for copper related to green infrastructure is very strong, rising from about 1 million metric tons this year to just under 6 million metric tons in 2030. All in all, Goldman Sachs says copper is still their most bullish commodity.

This week's focus: global economic data: us consumer confidence index for May, US April retail sales monthly rate, US April PPI, US April CPI

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