The main force of Shanghai copper fell under pressure, and the market transaction activity was relatively light

Market focus: (1) Fed Governor Waller: can be prepared to support the FOMC announcement of a reduced QE
by September.
Waller favors the Fed to act sooner and faster
on reducing QE.
(2) The recent meeting of the Political Bureau of the CPC Central Committee pointed out that the campaign-style "carbon reduction", rushing forward and lacking coordination, may make it difficult to achieve optimal costs and benefits of emission reduction, and may even affect the normal development
of the economy.
(3) According to Mysteel data, on August 2, the spot inventory of electrolytic copper in the Chinese market was 142,260 tons, down 017000 tons from the 26th and 10,500 tons from the 29th, and the decline in inventory slowed down
.

Spot analysis: On August 3, the spot 1# electrolytic copper quotation was 70940-71120 yuan / ton, the average price was 71030 yuan / ton, down 695 yuan / ton
per day.
Fear of heights is strong, downstream is on the rise, only maintain just need to purchase, the overall trading is general, and the transaction activity is relatively light
.

Warehouse receipt inventory: the total number of Shanghai copper warehouse receipts in Shanghai was 46,016 tons, a daily decrease of 175 tons, and a decrease of 35 consecutive days; LME copper stocks were 238,000 tonnes, down 650 tonnes
per day.

Main positions: the top 20 long positions of Shanghai copper main 2109 contract 71705, -4038, short positions 79435, -5656, net positions -7730, +1618, long and short are reduced, net space is reduced
.

Market research and judgment: China's manufacturing PMI data for July was lowered, indicating a slowdown in the pace of manufacturing expansion; Fed officials sent hawkish signals in support of the FOMC to reduce QE in September, hitting market risk sentiment
.
The supply of upstream raw materials gradually recovered, and TC prices continued to recover, but the Escondida copper mine decided to strike, causing supply concerns
.
At present, domestic smelting enterprises are in a centralized maintenance period, but under the condition of high production profits, output is expected to continue to increase
.
Recently, the delocalization of domestic copper inventories has slowed down significantly, and the spot tension has eased, putting pressure
on copper prices.