Daily Report 260816

PP
Yesterday PP futures market fluctuated at low positon; opened at 7492 and closed at 7497. Trading volume decreased 216000 lots to 325000 lots. Holding volume decreased 67936 lots to 517000 lots. Actuals side, yesterday domestic PP market continued narrowly side-way tendency. Near end of month, most districts of Sinopec keep factory price stable to bolster market. Traders sell goods with stable price. Downstream factory has resistant mindset for high price goods source, and willing for receiving goods is low. Market trading atmosphere is weak. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 8100-8300/ton, RMB 8100-8300/ton and RMB 8400-8450/ton, respectively. Currently moving average system twines, which is fluctuation tendency. Recently is the point for direction choice, and recommend for observation.
 
Nature Rubber
Yesterday Shanghai rubber night section fluctuated and dropped. Actuals trading period quotation decreased: domestic spots price is 1310-1320(-20); domestic cargo price is 1260-1270(-30); US RSS spots price is 1550-1580(-60); US RSS cargo price is 1520-1560(-90); Singapore cargo price is 1290-1300(-20); Thai cargo price 1310-1320(-20); mixed rubber price is 10350-10400(-100). Overall, the structure of forward and actuals and the contradiction brought by high inventory keep Shanghai rubber price with weak near month price and strong far month price. Pay attention to how the price gap fixes at September. Recommend short-term speculate under long-short games.
 
Copper
Thursday copper market was still weak. Copper price fluctuated at low position. Thursday LME inventory increased 9000 tons. Till now the for continuous days inventory increase has caused LME inventory largely increased 53000 tons to 264000 tons, which is the highest level this year. Inventory increase still mainly from Asia inventory. The four continuous day inventory increase caused LME Asia copper inventory increased 47000 tons to 119000 tons, which is the highest point since 30 July 2014. LME physical discount yesterday narrowed $8 to discount $9. Technically, copper price is near this year side-way range bolster positon. Whether this bolster price will be affective is the key point.
 
Dong LV (Investment Certificate NO. TZ008452)