June 2018 cable raw materials (copper) monthly report

Domestically,

1.
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 banks by 0.
5 percentage points
.

2.
The profit of China's industrial enterprises above designated size in May increased by 21.
1% year-on-year, compared with a 21.
9%
increase in the previous value.
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.

3
.
China's official manufacturing PMI rose to 51.
9% in May, the highest level since October last year.
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%.

4.
The one-month central environmental protection inspection "looking back" has been officially launched recently, and the inspection team has been stationed in Heilongjiang, Ningxia, Henan, Hebei and other provinces
.
Particular attention is paid to the formalism and bureaucracy
of "superficial rectification", "pretend rectification" and "perfunctory rectification".
Industry insiders told the Shanghai Securities Daily reporter that the escalation of "looking back" has a great
deterrent effect on local polluting industries and enterprises.
Under the current environmental protection situation, the backward small and medium-sized production capacity will accelerate the withdrawal, and the phenomenon of "bad money driving out good money" in some sub-industries may be reversed
.

International aspect,

1.
The U.
S.
State Department said it asked allies to reduce crude imports from Iran to zero
by Nov.
4.
If Iranian crude oil is still purchased after November 4, companies will face secondary sanctions
.

2.
The final real GDP slowdown in the first quarter of the United States 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
.

3.
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
.

4.
On June 15, the White House issued a statement on Sino-US trade, the total tariff on 1,102 products imported into China was finally approved, and 50 billion US dollars of goods were subject to 25% tariffs, and China then implemented a reciprocal counterattack, Trump threatened to impose tariffs again, the trade war intensified, and copper prices were under pressure
.

2.
Analysis of this month's market trend