SHAGNHAI, Jul. 27 (SMM) –The National Bureau of Statistics (NBS) released ex-work prices for major industrial products in some key enterprises on July 26th. Ex-work prices for refined copper containing 99.95% copper content were RMB 61,692.2/mt on July 20th, up 2.5% or RMB 1,478.3/mt from the previously surveyed prices on July 5th.
As market is generally worried over default risks in the US debt ceiling by August 2nd, international commodities markets have begun a new round of rises since late June. In response, Chinese domestic futures and spot markets have also increased. On July 26th, traded prices for #1 copper averaged at RMB 71,725/mt on the spot markets, up by 1.77% compared with the 5-day moving average, but down slightly from 20 days’ increases of 2.23%.
However, real trading volumes are not high like the prices. Based on an SMM survey, the returning high copper prices have damped downstream processing enterprises’ buying interest, and oversupply has begun to appear in the market.
Nevertheless, copper will still be favored by market players to do speculative activities or as risk aversion assets in the short term, given its strong financial properties.