NEW YORK (Reuters) – London Metal Exchange (LME) copper futures ended lower on Tuesday after touching a three-year high on Tuesday, as US factory orders were weak and dragged down to soften base metals.

China’s strong demand, the dollar weakness and supply worries and other factors to stimulate a wave of speculative buying, copper, aluminum, nickel and zinc prices are approaching years high.

“The market may hit short-term tops and some funds leave,” said Robin Bhar, head of metal research at Societe Generale.

He said: “But in the past few months each time you can fall back to a good buying.”

London time on September 5 17:00 (Beijing time on September 6 00:00), LME three-month copper fell 0.2 percent, to $ 6,901 per ton, earlier touched in September 2014 to the highest $ 6,970, Approaching the key psychological barrier $ 7,000.

Demand for strong metal consumer demand in China is expected to support copper prices rise. China’s manufacturing growth accelerated in August and is expected to remain strong by the end of this year.

But the United States in July factory orders recorded the biggest decline in nearly three years.

With copper prices rising for the ninth consecutive week, trend funds and speculators bet prices will continue to rise, COMEX copper long positions last week to record highs.

US Commodity Futures Trading Commission (CFTC) data released Friday showed that as of August 29 the week, speculators holding copper futures and options net long positions 2,796 hands to 124,929 hands, which is at least the highest since 2006 records Level.

German commercial bank analyst Daniel Briesemann said metal prices could go further, but he warned that the market had been out of supply and demand fundamentals and that copper could be trimmed below $ 6,000 per tonne.

LME copper stocks to reduce support prices, data released on Tuesday, LME copper warehouse receipts fell to 11.145 million tons, from mid-July to reduce about half.

Standard Chartered analysts say Indonesia has agreed with freeport, Freeport McMoRan Inc, to allow the free port to continue to operate its Grasberg copper mine, which has improved the copper supply outlook or the price structure drag.

China Yunnan Province Safety Production Committee Office recently issued “Yunnan Province in 2017 steel and electrolytic aluminum industry to carry out safety production law enforcement special action to promote backward production capacity exit program.” “Work program” proposed, the normal production of iron and steel enterprises in Yunnan Province and electrolytic aluminum enterprises to carry out safety production law enforcement special action to list the list of problems and risks, clear its safe production conditions, and urge the iron and steel enterprises to carry out security risks rectification, With the conditions of safe production, and comprehensively enhance the level of intrinsically safe, to achieve safe and healthy development; do not have the conditions of production safety conditions, in the end of December 2017 before the rectification or rectification is still unqualified, all the local government to bring the law to close off; For the basic safety of production conditions, but there are problems and risks through the deadline for rectification is still not up to the standard production capacity, all reported to the relevant departments to implement the differential price, ladder price, punitive tariffs and ultra-fixed water progressive fare increase and other different energy resources prices, And electrolytic aluminum industry backward and non-compliance capacity to exit.

Yunnan’s aluminum smelting capacity is about 1.7 million tons / year.

Philippine President Dutterter said Tuesday he agreed to ban open-pit mining because it caused environmental damage, but would give miners time to find other ways to extract minerals. The Philippines is the world’s largest exporter of nickel ore, the decline in nickel production in the Philippines gave nickel prices to support.

Among other base metals, aluminum closed down 1.1 percent at $ 2,096 a tonne.

Three-month zinc fell 2 percent at $ 3,140 a tonne.

Three-month tin futures were down 0.3% at $ 20,730 a tonne.

Three-month nickel fell 1.4 percent to $ 12,080 per tonne.

Three-month lead fell 2.5% to $ 2,330 a tonne.

August 29 US p-xylene market closing price stable, closing price of 765-775 US dollars / ton FOB US Harbor.

August 29 European p-xylene market closing price rose 2.5 US dollars / ton, closing price of 744-746 US dollars / ton FOB Rotterdam.

Recently, the domestic adipic acid production enterprises in August listing price is raised 200 yuan / ton to 9400 yuan / ton, which is the third time to adjust the listing price, August listing price has been raised 600 yuan / ton. August adipic acid market price increase is more impressive, from the end of July 8500 yuan / ton near the cumulative increase of 700-800 yuan / ton.

Near the settlement date, but Sinopec Benzene prices held steady after two months ushered in 100 yuan / ton range of the increase, on the one hand to a certain extent, support the adipic acid upside down intention. 6-8 months, the domestic benzene market has undergone a long time sawing, petroleum benzene inter-range adjustment, and hydrogenated benzene is followed by several rounds of fast rise and fall, although in July in Shandong in the environmental protection and cost pressures The supply of hydrogenated benzene decreased significantly, but did not stimulate the benzene market rebound performance. The domestic fundamentals short-term improvement is limited, short-term price of benzene to continue to pick up the lack of conditions, although the short-term news and good downstream of the downstream growth of styrene to the space, but the range of fear continue to be restricted.

Since the second half of July adipic acid market supply performance continued tight, the amount of contractors this month, there are still plans to reduce the market supply of equipment to start the announcement of the news is limited, this week, Chongqing Huafeng two 180,000 tons / Year installation of a week, but the other in the production device to start more fully, the overall load down to 60% of the following, but the recent majority of manufacturers still said that the supply of low inventory levels for traders to spot orders slow, middle part of the inventory But also more reluctant to sell. The market in August offer again and again on the probe, the real single is more steady follow up.

Downstream polyurethane slurry, soles of raw materials mainly large-scale environmental protection requirements of the production enterprises operating load is relatively adequate, but the non-compliance business to rectify the phenomenon of more, just need to show the general. Downstream and more stock, but adipic acid on the trend and the atmosphere under the goods less, the procurement atmosphere is acceptable. This week the relevant raw materials DMF, pure MDI continue upward trend, DMF rose 200 yuan / ton, pure MDI week rose 1,000 yuan / ton in the vicinity. It is also reported that the impact of the incident by the river or may have a substantial increase in the downstream cost of pressure or still a large floating, adipic acid market demand is limited.

The end of the month with the listing once again raised, the market is expected to follow the August settlement is also closely improved, the market offer part of the small single test up to 9500 yuan / ton acceptance, wait and see some profit disk inventory shipments, , The market talks to save 9200-9400 yuan / ton acceptance, the recent adipic acid market supply support to maintain, but still need to wait and see the supply and demand changes, the news side of the game saw, and strict environmental protection, security inspection, supply and demand uncertainty Increase, short-term supply support under the market to maintain a strong trend of finishing.

Central Environmental Protection Inspectorate Group has arrived in Jiangsu on August 21, Guannan, Guannan and other places, focusing on inspectors Taicang, Zhangjiagang, for a month. In addition, Jiangsu “263″ special rectification requirements of the boiler ban burning coal, corners of waste, garbage, etc., to switch to clean energy, in November 2017 before the conversion in place or central heating. At the same time industrial dust, waste gas, waste water must be standard.

Jiangsu as the largest concentration of domestic resin market concentration, accounting for almost 60% of China’s unsaturated resin production capacity, the Environmental Protection Inspectorate settled or will have a strong impact on the recent trend of the resin market. We also understand that Shandong as a large province of China’s chemical industry, with the Environmental Protection Inspectorate settled, the province’s small and medium-sized chemical enterprises are mostly hit, the resin industry, almost all of the resin enterprises in Shandong Province, all parking rest Sporadic enterprises to maintain a low load start, and according to Xiao Bian understand that later this part of the business will be closed, and the main downstream FRP enterprises also parking down load, Shandong resin market trading atmosphere is almost stagnant.

Although the environmental supervision of the Shandong region caused more serious trauma, but the contrast, the Jiangsu region will not cause such a serious impact, mainly due to the resin enterprises in Shandong Province for small and medium enterprises, low production capacity, and some enterprises environmental protection facilities Non-compliance, some small workshop-style enterprises or in the environmental protection in the disappearance of devoid; and on the Jiangsu region, the local more than an annual output of more than 50,000 tons of large and medium-sized enterprises, many of which 200,000 tons or even 300,000 tons Production enterprises, this part of the enterprise resin production equipment with supporting environmental protection facilities, the environmental protection of such enterprises less affected, but there are still some small businesses in the parking list, according to Xiaobian understanding, Changzhou Wujin area Part of the small business late parking is expected, and there is a long-term shutdown risk.

For this year, the unsaturated resin market is suffering from the strongest environmental inspection in recent years, but on the Xiaobian view, which on the other hand to speed up the resin industry reshuffle situation. As the entry threshold is low, a few years ago the resin industry is like a blowout burst out of a large number of small businesses, resulting in more serious low-cost competition, unsaturated resin industry, the overall excess capacity of more than 50%, and with the past two years, Supervision of the increase, these environmental protection facilities are not up to the enterprise after 2017 or difficult to see the date of restart, for large enterprises in the resin field is a good news, the other part of the resin market, large enterprises such as Xinyang Technology , Nantong Fangxin, Fujian Hualong, etc., in the brand, technology, product quality on the basis of strong, the current throw to maintain 80% or 90% of the operating rate, unsaturated resin market polarization intensified, but also shows that the resin industry is The blind expansion of production capacity in the past toward the brand, quality and other benign development