March 2018 cable raw materials (copper) monthly report

Domestic aspects:

From May 1, the value-added tax rate of manufacturing and other industries will be reduced by 1% to 16%, and the value-added tax rate of transportation, construction, basic telecommunications services and agricultural products and other goods will be reduced by 1% to 10%, which is expected to reduce taxes by 240 billion yuan
within the year.

1.
China's official manufacturing PMI in March was 51.
5, standing above the boom and bust line for 20 consecutive months, with an expectation of 50.
6 and a previous value of 50.
3
.
China's official non-manufacturing PMI for March was 54.
6 vs 54.
6 expected vs 54.
4
prior.
China's official composite PMIs for March were 52.
9
in the previous month.

International aspects:

1.
The latest final annualized quarterly rate of US real GDP in the fourth quarter was 2.
9%, higher than the previous value of 2.
5% and the expectation of 2.
7%, which means that the overall strong situation of the US economy has been relatively clear, and PEC and private investment will recover
.

2.
Trump formally signed a tariff agreement in the early morning of the 22nd local time in the United States, imposing heavy taxes on $50-60 billion of products imported from China, starting the beginning of a trade war
.
Immediately afterwards, China's Ministry of Commerce, out of protection of China's economy, announced an increase in tariffs on commodities including fruits and pork in the United States
.
The trade war between the world's two largest economies in China and the United States has raised concerns among global investors, and most stock markets in global markets have fallen
sharply.

2.
Analysis of this month's market trend