Shanghai copper runs weakly, and market risk aversion heats up

In the external market, London copper fluctuated to the downside
last week.
The average price of LME copper in the first four trading days was 5939.
5 US dollars / ton, down 25.
25% per day; Last week's average price was 5990.
8 US dollars / ton, down 0.
86%
from the previous month.

The pressure on China's manufacturing industry eased in July, and the manufacturing PMI rose month-on-month, but it was still below the boom and bust line; Eurozone manufacturing PMI final value recorded its lowest level since December 2012 in July, indicating a rapid contraction in the manufacturing sector; The US manufacturing index slipped to 51.
2% in July, and the overall global manufacturing industry was sluggish
.
The Fed's hawkish rate cuts make future rate cuts uncertain, and the dollar index hit a more than two-year high for a large week; After the Sino-US economic and trade consultations, the US president announced that he would impose 10% tariffs on China's $300 billion exports to the United States from September 1, raising risk aversion and further putting pressure
on copper prices.

In terms of the market, in the week of August 2, domestic spot copper prices fell sharply last week
.
The average price of Yangtze River nonferrous metal net 1# copper was 46854 yuan / ton, down 106 yuan / ton per day, and down 1.
13% on the weekly line; The average price of the previous week was 47208 yuan / ton, down 354 yuan / ton compared with last week, down 0.
75%
from the previous week.

In terms of inventory, copper stocks continued to deteriorate, with a cumulative decrease of 7,525 metric tons to 286,600 metric tons, a cumulative decrease of 2.
56%.

Copper Market News:

1
.
Canada's Ivanhoe Mining said its drilling in the western coastal area of the Democratic Republic of the Congo north of the Kamoa-Kakula copper project has identified several extensions of the mine.
The company recently received a C$612 million ($465 million) cash infusion from CITIC Metal to quickly bring its massive copper project into production
.

2.
Vedanta Resources has recently filed an arbitration
with the United Nations Commission on International Trade Law (UNCITRAL) over a dispute with the Zambian government.
Vedanta has previously made it clear that it will take urgent measures to protect its assets, while opening up dialogue with the government, while also reserving the right
to seek international arbitration if necessary.

The risk of global economic slowdown has increased, and the downward pressure on the domestic economy in the second half of the year is also increasing, and the macro situation continues to be bearish
.
China's July manufacturing data showed a relative improvement in demand, but overall manufacturing activity is still shrinking, short-term off-season demand weakness continues, and end-end demand such as automobiles has not yet picked up
.
However, the current decline in domestic demand is slowing down, and the power grid investment may be weak in the second half of the year; The tight supply of ore and scrap copper continues, and the overall output of global copper mines shows a downward trend due to the decline in taste and disturbance events, which may provide bottom support for copper prices, and copper prices are expected to rebound
next week.