SHANGHAI, Jul. 19 (SMM) –Related to recent copper price trends, SMM conducted a survey of major domestic copper plate, sheet, strip and foil producers, which showed mixed views.
About 45% of the surveyed producers were optimistic towards copper price gains, as they believed global inflation and excessive amount of currency issue will result a surge in commodity prices. Besides, the US dollar index will remain weak in the long run, as Federal Reserve chairman Ben Bernanke indicated more monetary easing if the US economic growth continues to slow down. If QE3 is implemented, it will drive up commodity prices.
Around 25% producers in the survey believed copper prices will fluctuate at high levels. They said SHFE copper prices finally are increasing significantly after fluctuating for a long time, but have little possibility to return at earlier levels of RMB 68,000/mt. Coupled with traditional low demand period, copper prices lack foundation to move up further.
Approximately 10% producers believed recent significant copper price increases are unexpected, and high copper prices will reduce spot copper purchases to some extent. Moreover, spot copper discounts frequently appear, and sluggish trading will not support copper prices above RMB 70,000/mt.
The remaining 10% producers couldn’t predict future copper prices.
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