Affected by the macro environment, copper prices are under pressure and fall endlessly

Domestic aspects:

1.
China's official manufacturing PMI fell below the boom-dry line in December for the first time
since July 2016.
China's official manufacturing PMI for December was 49.
4, 50 expected, 50
prior.
China's official non-manufacturing PMI for December was 53.
8 vs 53.
2 expected vs 53.
4
prior.
China's official composite PMI for December was 52.
6 vs 52.
8
previously.

2.
China's Caixin manufacturing PMI fell below the boom-dry line in December, hitting a 19-month low
.
China's Caixin manufacturing PMI in December was 49.
7, falling below the boom-bust line for the first time since May 2017, with expectations of 50.
2 vs 50.
2
prior.

International aspects:

1.
The number of ADP employment in the United States increased by 271,000 in December, the largest increase since February 2017, and the expectation was 180,000, and the previous value was revised from 179,000 to 157,000
.
Mark Zandi, chief economist at Moody's Analytics, believes that December's favorable weather will also help boost the job market, and at the current rate of job growth, the already low unemployment rate will be lower
.

2.
The final value of the Markit manufacturing PMI in the United States in December was 53.
8, a new low since September 2017, with an expectation of 53.
9 and a preliminary value of 53.
9; a final value of 55.
3
in November.
The US Markit Manufacturing PMI Output sub-index for December was 54.
3 final and preliminary 54.
3; November final was 54.
3
.
The final value of the Markit manufacturing PMI new orders sub-index in the United States in December was 54.
3, the lowest since September 2007, with a preliminary value of 54.
4, and a final value of 56.
7
in November.

In the market, domestic spot copper prices continued to fall
in the week of January 4.
The average price of Yangtze River nonferrous metal network 1# copper was 47403.
33 yuan / ton, down 463.
33 yuan / ton per day, down 2.
88% on a weekly basis; The average price of the previous week was 48192 yuan / ton, down 788.
67 yuan / ton compared with last week, down 1.
64%
from the previous week.

In terms of stocks, copper stocks continued to rise during the week, with a cumulative increase of 2,375 metric tons to 132,400 metric tons, a cumulative increase of 1.
83%.

Shanghai copper stocks decreased by 9,796 tons, or 8.
25%, to 108,890 tons
.

Industry News:

1.
On December 26, 2018, the second phase of the copper-cobalt wet recovery project of Musonoi Company, a subsidiary of Zijin Mining, was put into trial production, setting a record for the construction of Chinese-funded enterprises in the Congo (Kinshasa) mine, and running a new speed
for Zijin Mining to participate in the internationalization of the "Belt and Road".
The project officially started construction on March 24 this year, using the joint process of "crushing-acid leaching-extraction-electro-cobalt", with a designed annual output of 50,000 tons of copper and 3,000 tons
of cobalt.

2.
According to the BNAmericas website, the Collahuasi copper mine, in which Anglo American and Glencore each hold a 44% stake, has submitted an environmental impact statement to expand production and protect the life of the mine for more than 20 years
.
With an investment of US$3.
2 billion, the concentrator capacity will increase from 170,000 tonnes per day to 210,000 tonnes per day in the medium term, and the copper cathode production method will change from conventional leaching to biological heap leaching, capable of treating 35,000 tonnes
of oxide and sulfide mixed ores per day.
A desalination plant and pumping facility will also be built to reduce onshore water demand
.
When operational, the annual production of the Tarapacá region will increase from 550,000 tonnes to 710,000 tonnes
.

The outlook for the future market, economic data is intertwined, the first quarter of "Trump VS Democratic Party" collapsed, and the US government continued to shut down; China's Ministry of Commerce said that China and the United States will hold vice-ministerial consultations on economic and trade issues on January 7-8, and the new round of trade talks between China and the United States has boosted investor confidence and macro risks have eased
.
Fundamentally, due to the approaching Spring Festival holiday and limited downstream demand, copper prices have little hope of rebound, and copper prices are expected to be weak and volatile
.