SHANGHAI, Aug. 9 (SMM) –With regard to recent copper outlooks, SMM conducted a survey of major domestic copper wire rod producers. The survey revealed the following mixed outlooks.
Around 30% of the surveyed producers believed recent copper prices will fluctuate. In addition to disappointing economic results in all countries, the US debt issues haven’t been resolved fundamentally despite a deal on the debt ceiling, failing to ease market sentiment. However, a recent slight rebound in the US dollar index and news of supply disruptions for copper concentrate provide support for copper prices. Therefore, they believed recent copper prices will fluctuate in a wide range.
About 20% producers in the survey were optimistic towards the outlook. They held the views that the US will definitely print more money after raising the debt ceiling amid the global inflation, which will stimulate copper prices to experience another round of increases.
Approximately 20% producers were pessimistic towards copper prices. Growing market risk aversion sentiment is pushing gold and silver prices toward new record highs amid current gloomy global economic situation, coupled with the seasonal low demand period in 3Q, copper price will move downward.
The number of producers who can’t predict future copper prices accounts for 30%, up significantly compared to the previous months.