SHANGHAI, Jun. 9 (SMM) – China’s CPI rose by merely 1.2% on the year in May and dropped 0.2% from April, the resultant inflation pressure triggered expectation for further monetary easing. Will copper prices still benefit from this growing hope for easing policies?
Analyst from Guosen Futures believes that the positive influence on copper market is receding, as any stimulus measures are unlikely to give an immediate boost to copper demand.
“The potential favorable measures will help improve liquidity conditions and shore up market sentiment, but the poor end-user consumption was now the major drag on copper prices,” the analyst told SMM.
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