A Series of Macroeconomic Policies in China Helped Copper Prices Break through the 70,500 yuan/mt Mark

SHANGHAI, Feb 27 (SMM) – Domestic fiscal and monetary policies continued to boost the economy. The real estate market in many places has picked up, with real estate sales in Beijing, Shanghai, Shenzhen, and Hangzhou rallying. Recently, the China Securities Regulatory Commission has initiated a pilot project for real estate private equity investment funds, and also encourages foreign investors to invest in real estate private equity investment funds in the form of Qualified Foreign Limited Partnership (QFLP). The real estate industry ushered in a new approach for “obtaining sources”.

Overseas inventory declined to a relatively low level last week, and that helped SHFE copper prices spike on the back of domestic macro influence. Consumption is slowly recovering with the release of various policies related to infrastructure and real estate. On February 24, the copper inventory in the mainstream Chinese markets tracked by SMM held flat from that two Fridays ago, standing at 325,400 mt, and temporarily snapping the continuous stock accumulation since after Chinese New Year holidays. It is worth noting that compared with the same period last year, due to the slow recovery of end-user consumption, not only the inventory is higher, but the destocking speed is also slower. The high social inventory will limit copper price gains in the short term.

On the whole, domestic real estate industry had solid positive news during the week, pushing SHFE copper prices to breach the 70,500 yuan/mt mark.