June 2018 cable raw materials (aluminum) monthly report

Domestic aspects:

1.
China's Caixin services PMI 52.
9 in May, 52.
9 expected, 52.
9
prior.
China's May Caixin composite PMI 52.
3 vs 52.
3
prior.
China's May PPI was 4.
1% y/y vs 3.
9% expected and 3.
4%
prior.
China's May CPI was 1.
8% y/y vs.
1.
8% expected and 1.
8%
prior.

2.
From July 5, 2018, the central bank will reduce the RMB deposit reserve ratio of large state-owned commercial banks, joint-stock commercial banks, postal savings banks, urban commercial banks, non-county rural commercial banks and foreign-funded banks by 0.
5 percentage points
.

3.
The profits of China's industrial enterprises above designated size in May increased by 21.
1% year-on-year, compared with 21.
9%
in the previous month.
Among them, the growth rate in May was 21.
1%, which was 0.
8 percentage points slower than the growth rate in April, continuing the momentum
of rapid growth.

China's official manufacturing PMI rose to 51.
9% in May, the highest level since October
.
The prosperity of traditional industries has rebounded, but the PMI of small enterprises has fallen below
the boom and bust line.
Caixin China's services PMI in May was flat from the previous month
.
The World Bank raised its 2018 GDP forecast for China to 6.
5%.

Foreign aspects:

1.
The American Aluminum Association said that the US Department of Commerce determined that China's ordinary aluminum alloy sheet sold in the US market at a lower than fair price would impose a preliminary anti-dumping duty
of 167.
16%.
The Aluminum Association welcomed
the decision.
The association often announces antidumping and countervailing duty findings
on aluminum products before the Department of Commerce.

2.
The U.
S.
State Department said it is required to reduce the amount of crude oil imported from Iran to zero
by Nov.
4.
If Iranian crude oil is still purchased after November 4, companies will face secondary sanctions
.

3.
The final real GDP slowdown in the United States in the first quarter was greater than expected, and the performance of personal consumption expenditures recorded the worst level
in nearly five years.
However, due to the strong labor market and the favorable impact of tax reform policies, economic growth may regain momentum
.

4.
The US CPI in May was 2.
8% year-on-year, the largest increase since February 2012, expected to be 2.
8%, the previous value was 2.
5%, and the US economic data was favorable for the US dollar to continue to strengthen
.