Market sentiment has stabilized After the adjustment of copper prices, there may be room for rebound

In terms of news, the voting results of the world's largest copper mine, BHP Billiton's Escondida copper mine in Chile, rejected the proposal of the investor and decided to strike, which last year hit the global copper market hard and hindered the economic growth
of the world's largest copper consumer.
The U.
S.
government has stepped up pressure to impose 25 percent tariffs on $200 billion of Chinese goods, instead of the previous 10 percent, and China says it is fully prepared and will have to retaliate
.

Global metals investors fear that the intensification of the trade conflict between the world's two largest economies will slow global economic growth and hit industrial demand, taking a back
seat to the impact of the strike at the world's largest copper mine.
In the short term, copper prices are supported by expectations that copper strikes may cause tighter upstream supply, but the escalation of Sino-US trade tensions and the slowdown in China's manufacturing industry have hit the outlook for industrial metal demand, and copper prices have come under pressure and lower
in the short term.

In terms of inventories, in the latest week, London copper stocks continued to decline, with a cumulative decrease of 2,900 metric tons to 250625 metric tons, a cumulative decrease of 1.
14%.

Copper stocks continued to decline during the week, with a cumulative decrease of 2,900 metric tons to 250625 metric tons, a cumulative decrease of 1.
14%.

In the latest week, Shanghai copper stocks decreased by 4,251 tons to 192817 tons, a decrease of 2.
16%, and the cumulative decline in the past five weeks was 26.
95%.

In terms of industry, on August 3, 2018, the 17th batch of domestic restricted copper scrap import approvals in 2018 was announced, and the number of this approval was 9,899 tons
.
In the approval documents released this time, there are 3 enterprises in the restricted copper scrap approval, of which 2 are in Zhejiang and 1 is in Jiangxi; There are no new ventures
.
Up to now, the number of restricted copper scrap import approvals announced in 2018 is 725,300 tons, down 75.
9%
from 3,005,800 tons in 2017.

Looking ahead, the current market sentiment has stabilized, but copper prices are still affected by macro factors
.
The escalation of the Sino-US trade dispute continues to weigh on the outlook for industrial metal demand, in addition, China's economic slowdown is expected to be bearish for copper prices, and the expectation of a high probability of interest rate hikes by the Federal Reserve in the third quarter supports the strengthening of the US dollar, copper prices continue to come under pressure
.
However, the recent news of the global copper mine strike, and the collective expiration of the labor agreement in the second half of the year, will become the focus of the copper market, and the tightening of upstream supply is expected to support copper prices
.
Under the premise of continuous digestion of bearishness, coupled with the improvement of the domestic consumer market in the later stage, the downward space of copper prices may be limited, and it is expected to rebound
after the adjustment of the fall.