Report Overview - Report Name: Nanhua Futures Copper Risk Management Daily Report - Date: August 28, 2025 - Research Team: Nanhua Non - ferrous Metals Research Team [1] 1. Report Industry Investment Rating - Not provided in the report 2. Core View - Copper price decline recently was expected. The U.S. dollar index rebounded from 97 to 98.4 after a sharp drop last Friday, showing strong support at the bottom. There is an obvious negative correlation between copper price and the U.S. dollar index in recent trading days. The change in the U.S. dollar index is due to Trump's announcement to remove Fed governor Lisa Cook, but Cook responded that Trump has no right to fire her. In the short - term, there is still some pressure above the copper price from the bottom support of the U.S. dollar index and the negative feedback of demand at high prices. As time passes, the downstream producers' acceptance of copper price is increasing, providing support for the copper price. The target price below is tentatively set at 78,000 yuan per ton [3] 3. Summary by Related Catalogs 3.1 Copper Price and Volatility - Latest copper price: 79,190 yuan/ton, with a monthly price range forecast of 73,000 - 80,000 yuan/ton. The current volatility is 11.64%, and the historical percentile of the current volatility is 22.6% [2] 3.2 Copper Risk Management Suggestions 3.2.1 Inventory Management - For high finished - product inventory and fear of price decline (long spot exposure): - Strategy 1: Short the main Shanghai copper futures contract. Sell the main Shanghai copper futures contract with a hedging ratio of 75% at around 82,000 yuan. - Strategy 2: Sell call options. Sell CU2511C82000 with a hedging ratio of 25% when the volatility is relatively stable [2] 3.2.2 Raw Material Management - For low raw - material inventory and fear of price increase (short spot exposure): Long the main Shanghai copper futures contract. Buy the main Shanghai copper futures contract with a hedging ratio of 75% at around 77,000 yuan [2] 3.3 Factors Affecting Copper Price 3.3.1 Bullish Factors - The U.S. reaches an agreement on tariff policy with other countries. - Increased expectations of interest rate cuts lead to a decline in the U.S. dollar index, boosting the valuation of non - ferrous metals. - The lower support level is rising [4] 3.3.2 Bearish Factors - Tariff policy is changeable. - Global demand decreases due to tariff policies. - The adjustment of U.S. copper tariff policy causes an extremely high COMEX inventory [5] 3.4 Copper Futures and Spot Data 3.4.1 Copper Futures Data (Daily) | Futures Contract | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Shanghai Copper Main | yuan/ton | 79,190 | 0 | 0% | | Shanghai Copper Continuous 1 | yuan/ton | 79,190 | 0 | 0% | | Shanghai Copper Continuous 3 | yuan/ton | 79,140 | 0 | 0% | | LME Copper 3M | dollars/ton | 9,773.5 | - 73 | - 0.74% | [4] 3.4.2 Copper Spot Data (Daily) | Spot Type | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Shanghai Non - ferrous 1 Copper | yuan/ton | 79,545 | - 40 | - 0.05% | | Shanghai Wumaotong | yuan/ton | 79,560 | - 30 | - 0.04% | | Guangdong Nanchu | yuan/ton | 79,480 | - 100 | - 0.13% | | Yangtze River Non - ferrous | yuan/ton | 79,670 | - 110 | - 0.14% | | Shanghai Non - ferrous Premium/Discount | yuan/ton | 170 | 40 | 30.77% | | Shanghai Wumaotong Premium/Discount | yuan/ton | 140 | 60 | 75% | | Guangdong Nanchu Premium/Discount | yuan/ton | 115 | 15 | 15% | | Yangtze River Non - ferrous Premium/Discount | yuan/ton | 165 | 0 | 0% | [7] 3.5 Copper Scrap - to - Refined Spread | Spread Type | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Current Scrap - to - Refined Spread (Tax - included) | yuan/ton | 1,464.89 | - 86.39 | - 5.57% | | Reasonable Scrap - to - Refined Spread (Tax - included) | yuan/ton | 1,495.5 | 0.2 | 0.01% | | Price Advantage (Tax - included) | yuan/ton | - 30.61 | - 86.59 | - 154.68% | | Current Scrap - to - Refined Spread (Tax - excluded) | yuan/ton | 6,150 | - 80 | - 1.28% | | Reasonable Scrap - to - Refined Spread (Tax - excluded) | yuan/ton | 6,220.77 | 1.39 | 0.02% | [11] 3.6 Copper Warehouse Receipts and Inventories 3.6.1 SHFE Copper Warehouse Receipts (Daily) | Warehouse Receipt Type | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Total SHFE Copper Warehouse Receipts | tons | 21,287 | - 1,630 | - 7.11% | | Total International Copper Warehouse Receipts | tons | 5,797 | 0 | 0% | | SHFE Copper Warehouse Receipts in Shanghai | tons | 2,405 | 0 | 0% | | Total Bonded SHFE Copper Warehouse Receipts | tons | 0 | 0 | - 100% | | Total Tax - paid SHFE Copper Warehouse Receipts | tons | 21,287 | - 1,630 | - 7.11% | [13] 3.6.2 LME Copper Inventory (Daily) | Inventory Type | Unit | Latest Price | Change | Change Rate | | --- | --- | --- | --- | --- | | Total LME Copper Inventory | tons | 156,100 | 1,100 | 0.71% | | LME Copper Inventory in Europe | tons | 24,400 | - 150 | - 0.61% | | LME Copper Inventory in Asia | tons | 16,725 | - 113,875 | - 87.19% | | LME Copper Inventory in North America | tons | 0 | 0 | - 100% | | Total LME Copper Registered Warehouse Receipts | tons | 142,850 | - 400 | - 0.28% | | Total LME Copper Cancelled Warehouse Receipts | tons | 13,250 | 1,500 | 12.77% | [15] 3.6.3 COMEX Copper Inventory (Daily) | Inventory Type | Unit | Latest Price | Weekly Change | Weekly Change Rate | | --- | --- | --- | --- | --- | | Total COMEX Copper Inventory | tons | 273,767 | 3,231 | 1.19% | | Total COMEX Copper Registered Warehouse Receipts | tons | 141,117 | 4,418 | 0.47% | | Total COMEX Copper Cancelled Warehouse Receipts | tons | 132,650 | 1,006 | 0.76% | [16] 3.7 Copper Import Profit and Processing | Indicator | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Copper Import Profit/Loss | yuan/ton | 157.56 | 206.61 | - 421.22% | | Copper Concentrate TC | dollars/ton | - 41.06 | 0.24 | - 0.58% | [17]

Report Overview - The report is the Copper Risk Management Daily Report of Nanhua Futures, dated August 19, 2025, prepared by Nanhua's non-ferrous metals research team [1] Investment Rating - Not mentioned in the report Core Viewpoints - The slight decline of copper prices on Monday was a bit unexpected, possibly related to the decline in the valuation of the entire commodity market. The stock market's unexpected strength on Monday did not drive the futures market. In the short term, copper prices may continue to fluctuate, or slightly strengthen. The previous support level of 77,000 yuan per ton can be raised to 78,000 yuan per ton. Powell's speech at the global central bank annual meeting may have limited impact on copper prices [3] Summary by Directory Copper Price Volatility and Risk Management Suggestions - The latest copper price is 78,950 yuan/ton, with a monthly price range forecast of 73,000 - 80,000 yuan/ton. The current volatility is 11.64%, and the historical percentile of the current volatility is 22.6% [2] - For inventory management (high finished product inventory, worried about price decline), it is recommended to short 75% of the Shanghai copper main futures contract at around 82,000 yuan/ton and sell 25% of the call option CU2510C82000 when the volatility is relatively stable. For raw material management (low raw material inventory, worried about price increase), it is recommended to long 75% of the Shanghai copper main futures contract at around 77,000 yuan/ton [2] Factors Affecting Copper Prices - **Likely to increase prices**: The US reaches an agreement on tariff policies with other countries; the increase in interest rate cut expectations leads to a decline in the US dollar index, pushing up the valuation of non-ferrous metals; the support level is raised [4][5] - **Likely to decrease prices**: The tariff policy fluctuates; global demand decreases due to tariff policies; the adjustment of the US copper tariff policy leads to an extremely high COMEX inventory [5][7] Copper Futures and Spot Data - **Futures data**: The latest price of the Shanghai copper main contract is 78,950 yuan/ton, with no daily change. The Shanghai copper continuous one contract decreased by 150 yuan/ton (-0.19%), and the London copper 3M contract decreased by 8 US dollars/ton (-0.08%). The Shanghai-London ratio is 8.18, a decrease of 0.02 (-0.24%) [6] - **Spot data**: The latest prices of Shanghai Nonferrous 1 copper, Shanghai Wumei, Guangdong Nanchu, and Yangtze Nonferrous are 79,280 yuan/ton, 79,280 yuan/ton, 79,150 yuan/ton, and 79,430 yuan/ton respectively, with daily increases of 0.13%, 0.14%, 0.18%, and 0.16% [13] Copper Scrap Price Difference - The current scrap price difference (tax-included) is 1,013.51 yuan/ton, a decrease of 85 yuan (-7.74%); the reasonable scrap price difference (tax-included) is 1,492.05 yuan/ton, a decrease of 0.85 yuan (-0.06%) [15] Copper Warehouse Receipts and Inventories - **Warehouse receipts**: The total Shanghai copper warehouse receipts are 25,498 tons, an increase of 938 tons (3.82%); the total international copper warehouse receipts are 14,351 tons, an increase of 6,929 tons (93.36%) [19] - **Inventories**: The total LME copper inventory is 155,600 tons, a decrease of 200 tons (-0.13%); the total COMEX copper inventory is 269,070 tons, an increase of 3,874 tons (1.46%) [22][23] Copper Import Profit and Processing Fees - The copper import profit is 329.14 yuan/ton, an increase of 184.22 yuan (127.12%); the copper concentrate TC is -37.67 US dollars/ton, with no change [24]

Report Overview - Report Name: Nanhua Futures Copper Risk Management Daily Report - Date: August 15, 2025 - Research Team: Nanhua Non - ferrous Metals Research Team [1] 1. Report Industry Investment Rating - No information provided 2. Core Viewpoints - Copper prices declined slightly on Thursday due to the stabilization of the US dollar index and the decline of the domestic stock market, which lowered the valuation of commodities. However, the medium - term upward trend of copper prices has emerged. The recent US inflation data is favorable for the Fed to cut interest rates, which lowers the US dollar index and boosts the valuation of the entire non - ferrous metals sector. Downstream terminals are hesitant about the negative demand feedback in August caused by US tariffs, and believe that the current price has basically fulfilled the previous expectations. The previous support level of 77,000 yuan per ton can be raised to 78,000 yuan per ton. The change in the copper term structure from B to C indicates that this round of price increase is supported by the structure and may be more solid [3] 3. Summary by Relevant Content 3.1 Copper Price and Volatility - The latest copper price is 78,950 yuan/ton, with a monthly price range forecast of 73,000 - 80,000 yuan/ton. The current volatility is 11.64%, and the historical percentile of the current volatility is 22.6% [2] 3.2 Copper Risk Management Suggestions 3.2.1 Inventory Management - For high finished - product inventory and fear of price decline, with a long spot exposure, it is recommended to sell 75% of the Shanghai Copper main futures contract at around 82,000 yuan/ton and sell 25% of the CU2510C82000 call option when the volatility is relatively stable [2] 3.2.2 Raw Material Management - For low raw - material inventory and fear of price increase, with a short spot exposure, it is recommended to buy 75% of the Shanghai Copper main futures contract at around 77,000 yuan/ton [2] 3.3 Factors Affecting Copper Prices 3.3.1 Bullish Factors - The US and other countries reach an agreement on tariff policies; increased expectations of interest rate cuts lead to a decline in the US dollar index, boosting the valuation of non - ferrous metals; the lower support level is raised [4] 3.3.2 Bearish Factors - Tariff policies are inconsistent; global demand decreases due to tariff policies; the adjustment of US copper tariff policies leads to an extremely high virtual inventory in COMEX [5] 3.4 Copper Futures and Spot Data 3.4.1 Copper Futures Data (Daily) | Futures Type | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Shanghai Copper Main | Yuan/ton | 78,950 | 0 | 0% | | Shanghai Copper Continuous 1 | Yuan/ton | 78,950 | - 430 | - 0.54% | | Shanghai Copper Continuous 3 | Yuan/ton | 78,920 | 0 | 0% | | LME Copper 3M | US dollars/ton | 9,777 | 0 | 0% | [4] 3.4.2 Copper Spot Data (Daily) | Spot Type | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Shanghai Non - ferrous 1 Copper | Yuan/ton | 79,435 | - 40 | - 0.05% | | Shanghai Wumaotrade | Yuan/ton | 79,465 | 50 | 0.06% | | Guangdong Southern Storage | Yuan/ton | 79,390 | 120 | 0.15% | | Yangtze Non - ferrous | Yuan/ton | 79,600 | 90 | 0.11% | | Shanghai Non - ferrous Premium/Discount | Yuan/ton | 210 | 10 | 5% | | Shanghai Wumaotrade Premium/Discount | Yuan/ton | 135 | 0 | 0% | | Guangdong Southern Storage Premium/Discount | Yuan/ton | 175 | 20 | 12.9% | | Yangtze Non - ferrous Premium/Discount | Yuan/ton | 170 | 20 | 13.33% | [8] 3.5 Copper Refined - Scrap Spread - The current refined - scrap spread (tax - included) is 1,128.51 yuan/ton, with a daily change of - 53.62 yuan/ton and a daily change rate of - 4.54%. The reasonable refined - scrap spread (tax - included) is 1,493.2 yuan/ton, with a daily change of - 1.6 yuan/ton and a daily change rate of - 0.11%. The price advantage (tax - included) is - 364.69 yuan/ton, with a daily change of - 52.02 yuan/ton and a daily change rate of 16.64%. Similar data is also provided for the non - tax - included situation [11] 3.6 Copper Warehouse Receipts and Inventories 3.6.1 Shanghai Futures Exchange (SHFE) Copper Warehouse Receipts (Daily) | Warehouse Receipt Type | Unit | Latest Price | Daily Change | Daily Change Rate | | --- | --- | --- | --- | --- | | Total SHFE Copper Warehouse Receipts | Tons | 24,434 | 1,634 | 7.17% | | Total International Copper Warehouse Receipts | Tons | 7,422 | 0 | 0% | | SHFE Copper Warehouse Receipts in Shanghai | Tons | 2,504 | 0 | 0% | | Total Bonded SHFE Copper Warehouse Receipts | Tons | 0 | 0 | - 100% | | Total Tax - paid SHFE Copper Warehouse Receipts | Tons | 24,434 | 1,634 | 7.17% | [13] 3.6.2 LME Copper Inventory (Daily) | Inventory Type | Unit | Latest Price | Change | Change Rate | | --- | --- | --- | --- | --- | | Total LME Copper Inventory | Tons | 155,850 | - 25 | - 0.02% | | LME Copper Inventory in Europe | Tons | 24,900 | - 475 | - 1.87% | | LME Copper Inventory in Asia | Tons | 130,950 | 450 | 0.34% | | LME Copper Inventory in North America | Tons | 0 | 0 | - 100% | | Total LME Copper Registered Warehouse Receipts | Tons | 144,800 | 475 | 0.33% | | Total LME Copper Cancelled Warehouse Receipts | Tons | 11,050 | - 500 | - 4.33% | [15] 3.6.3 COMEX Copper Inventory (Daily) | Inventory Type | Unit | Latest Price | Weekly Change | Weekly Change Rate | | --- | --- | --- | --- | --- | | Total COMEX Copper Inventory | Tons | 266,804 | 3,508 | 1.33% | | Total COMEX Copper Registered Warehouse Receipts | Tons | 124,862 | 1,269 | - 1.99% | | Total COMEX Copper Cancelled Warehouse Receipts | Tons | 141,942 | 2,547 | 1.83% | [17] 3.7 Copper Import Profit and Processing - The copper import profit and loss is 44.55 yuan/ton, with a daily change of 119.85 yuan/ton and a daily change rate of - 159.16%. The copper concentrate TC is - 38 US dollars/ton, with no daily change [18]