SHANGHAI, Aug. 30 (SMM) –With regard to recent copper price trends, SMM conducted a survey of domestic copper wire rod producers.
About 30% producers participating in the survey said copper prices will fluctuate for some time in the future. Before the release of any factor that will bring significant impacts, copper prices will fluctuate in line with the announcement of some economic results.
Around 30% producers in the survey were optimistic towards future copper prices. First, as the seasonal low demand period approaches, copper's demand-side will support copper prices during September. Second, the introduction of QE3 will be an inevitable trend, and the US dollar index will remain weak in the long term, which will help copper prices to move upward later.
Approximately 10% producers were pessimistic towards future copper prices, since economic environment is persistent in markets, including a global economic slowdown, the lingering European and US debt problems, as well as China's tight monetary policies in the near term. Copper consumption is directly affected by economic movements, so copper prices will move downward amid various negative factors.
The remaining 30% producers said there were much uncertainties in future copper price trends.