Copper prices to inch down amid higher US dollar and stocks

SHANGHAI, Feb 6 (SMM) -The US dollar index is expected to rebound on top of the interest rate hike. Although the market expects the consumption to recover this week, the stock accumulation exceeding expectations should weigh on copper prices.

LME copper is expected to trade between $8,750-9,200/mt this week and SHFE copper will fluctuate between 67,800-69,600 yuan/mt.

In China’s domestic spot market, although most enterprises in the industrial chain have restarted operations on January 31, they still had raw material inventories on hand amid a slow production pace driven by persistently sluggish end-user consumption and scarce new orders. Nonetheless, the market is still optimistic over end-user consumption after the Lantern Festival. As such, spot quotes will edge up this week, with spot discounts of 50 yuan/mt to premiums of 50 yuan/mt.