August 2017 cable raw materials (copper) monthly report

Domestic aspects:

1.
Premier Li Keqiang pointed out at the executive meeting of the State Council held on August 23: take effective measures to ensure the completion of this year's resolution of excess production capacity of steel and coal, promote thermal power, electrolytic aluminum, building materials and other industries to reduce production and strictly control new production capacity
.
Boosted by this news, the varieties of related metals are rising, and it can be inferred that with the deepening of domestic supply-side reform, it will be beneficial to non-ferrous metals
in the long run.

In February and August, China's manufacturing purchasing managers' index (PMI) was 51.
7%, up 0.
3 percentage points
from the previous month.
This index has remained above the boom and bust line for 13 consecutive months
.
The subsequent Caixin manufacturing PMI was also higher than expected, with the new orders index and new export orders index recording new highs since March 2010, respectively, indicating that China's manufacturing economy is in a virtuous circle
.
On the whole, it shows that the foundation for China's steady economic growth has been generally established
.
The stability and improvement of the economy has brought space for the improvement of consumption, which is good for copper prices in the long run
.

International aspects:

In January and mid-August, the racial conflict in the United States intensified for a while, and Trump's statement with the intention of defending whites added fuel to the fire, and the anger that exploded has led to the dissolution
of the two advisory committees.
However, there are also positive factors, the White House and the top congressional level reached a consensus on the key issues of tax reform, to raise funds for tax cuts, corporate taxes or 25% cut, which laid a good foundation
for Trump's tax reform policy.
Compared with the strong resistance to health care reform policies, the promotion of tax reform is easier
.

2.
Data released by the US Department of Commerce on August 25 showed that the preliminary monthly rate of durable goods orders in the United States fell by 6.
8% in July, and the previous value increased by 6.
4%, which was less than expected
.
U.
S.
jobless claims rose slightly, suggesting that the underlying trend of tightening the job market remains unchanged, which could have an impact
on the Fed's next rate hike.