Market risk aversion still exists Macro dominates copper prices

Macro aspects:

Domestically, China's Caixin composite PMI in August was the lowest in five months, indicating a second consecutive monthly slowdown in China's economic activity, and the composite output index was the lowest in five months, indicating only a slight expansion
in economic activity.
China's Caixin services PMI fell sharply in August from the previous month, hitting its lowest
level since November.
The new business index of the service sector rebounded slightly after a sharp decline in the previous month, and the demand situation in the service sector remained unsatisfactory
.

Internationally, the number of ADP payrolls in the United States in August was less than expected
.
Despite a slight slowdown in employment growth, the market remains dynamic and medium-sized companies continue to be engines of growth, adding nearly 70 percent of jobs
.
U.
S.
initial filings last week were the lowest since December 1969, suggesting that continued labor market growth will continue to support growth
.
The labour market is currently considered close to or fully employed
.

In terms of the market, recently, domestic spot copper prices have fallen
as a whole.
The average price of Yangtze River nonferrous metal network 1# copper was 48050 yuan / ton, down 122 yuan / ton per day, down 1.
25% on a weekly basis; The average price of the previous week was 48,754 yuan / ton, down 704 yuan / ton compared with last week, down 1.
44%
from the previous week.

In terms of inventories, London copper stocks fell sharply, with a cumulative decrease of 18,750 metric tons to 246175 metric tons, a cumulative decrease of 7.
08%, to the lowest level since January
.
Shanghai copper inventories fell by 1,950 tons to 136051 tons this week, a decline of 1.
41%, and the latest 10-week cumulative decline of 48.
46% to a 10-month low
.

Industry News:

1.
A company owned by Russian billionaire Alisher Usmanov Holdings said Tuesday it had begun construction of a large mining and metallurgical plant
at the Udokan copper mine in a remote region of eastern Siberia.
Udokan is the largest undeveloped copper mine in Russia and one of the
largest in the world.
With total reserves of about 26.
7 million tons, the Udokan copper mine is the largest undeveloped copper mine in Russia and one of the
largest in the world.

Global mining giant BHP Billiton said on Wednesday it would buy a 6.
1 percent stake
in SolGold for $35.
2 million.
SolGold PLC is the majority shareholder and operator
of the Cascabel copper mine project in Ecuador.
BHP CEO Andrew Mackenzie said the investment would give the company exposure to a high-quality copper exploration project in Ecuador, which is a "very promising" project
for the company.

Looking forward to the future market, a new round of tariff war between China and the United States may break out at any time, the market risk aversion is difficult to cool down, and the current macro uncertainty is still the leading factor suppressing non-ferrous metals; Copper inventories at home and abroad maintain a dematerialization trend, which may support the bottom of copper prices, and it is expected that copper prices will continue to have little room to decline
.