Macro risks still exist The rise in copper prices should not be overly optimistic

In the external market, data showed that copper rebounded higher
during the week.
The average price of LME copper in the first four trading days was 5704.
5 US dollars / ton, up 47 US dollars / ton per day; Last week's average price was 5685 US dollars / ton, up 0.
34%
from the previous month.

On the macro front, copper prices were under pressure in the early part of the week as copper prices came under pressure on the outlook for industrial metals due to the shrinking of ISM manufacturing in the United States in August
, which exacerbated fears of a global economic slowdown, and the start of new US-China tariffs hit the outlook for industrial metal demand.
However, as China releases the signal of increasing the policy of stable growth, counter-cyclical adjustment will increase, and it is a high probability event that the RRR reduction can be expected to land in September; As well as the U.
S.
-China agreement to high-level trade talks, tensions are showing signs of easing, and macro risk sentiment is picking up, pushing copper prices out of lows
.

In terms of the market, in the week of September 6, domestic spot copper prices rebounded and rose
during the week.
The average price of Yangtze River nonferrous metal network 1# copper was 46836 yuan / ton, up 170 yuan / ton per day, and the weekly line rose 1.
82%; The average price of the previous week was 46496 yuan / ton, up 340 yuan / ton compared with last week, up 0.
73%
from the previous month.

The copper mine energy cycle is in a downturn, the aging of existing mines has emerged, the supply shortage situation continues, and the price of copper concentrate is still high, but it has not yet been transmitted to the operating rate of smelters
.
At present, the supply of electrolytic copper has not changed much, and domestic refined copper production is limited by processing costs
.
In addition, copper scrap may shrink due to tariffs, but processing fees are expected to fluctuate
.

In terms of inventories, copper stocks continued to decline during the week, with a cumulative decrease of 24,400 metric tons to 313275 metric tons, a cumulative decrease of 7.
23%.

During the week, Shanghai copper stocks stopped falling and rebounded, increasing by 18,183 tons to 162059 tons, an increase of 12.
64%.

Copper Market News:

1.
Chile's private copper producer Mantos copper has secured $250 million in funding to fund the expansion of its Mantos Blancos sulphide concentrate plant, which will extend the life of open-pit copper mines until 2035 and reduce costs
.

2.
Heilongjiang Zijin Copper Industry copper smelting project is put into operation, and after reaching production, it will have an annual output of 150,000 tons of standard cathode copper and 600,000 tons of sulfuric acid, with an annual output value of 10 billion yuan and a profit and tax of 500 million yuan
.
This project is one of the top 100 projects planned and constructed in Heilongjiang Province, and is a long-term plan
for Zijin Mining to expand and strengthen the copper plate based on the leading industrial layout.

Looking forward to the future market, entering the "Golden Nine Silver Ten" consumption season, the automotive industry will be in the replenishment stage, there is little room for demand decline, and the car market is expected to gradually recover in September; The completion of power grid investment in the first half of the year is basically half of the second half of the year, and the growth rate of power grid investment can be expected
within the year.
The tight pattern of mine end will exist for a long time, the increase in electrolytic copper supply may be relatively limited, the power grid, automobile and other terminal industries will have seasonal improvements, consumption improvement will support copper prices, but macro risks remain, copper prices should not be overly optimistic, it is expected that next week's copper price upward momentum has weakened
.