SHANGHAI, Sept. 6 (SMM) –With regard to future copper price trends, SMM recently conducted a survey of 20 major domestic copper tube/pipe producers, which showed mixed views.
Based on the survey, about 40% producers believed there would be some room for this round of copper price increases. Growing market expectations of the implementation of QE3 measures during September and anticipations of stocking activities from China will somehow help push up copper prices. Besides, after the start of September, copper consumption will gradually increase, and the improvement in copper supply side will help support higher copper prices. However, these producers kept conservative about the rising room for copper prices, with RMB 70,000/mt becoming the current importance psychological level for the long investors.
Approximately 15% producers in the survey were pessimistic about copper prices. They mainly held the view that due to economic uncertainties in European countries and the US, the focus of copper consumption has been shifted to China, which has been implementing tight macro regulations and is committed to a slow and stable economy. These moves will not support higher commodity prices, and so these producers believed current copper price increases are merely price corrections on earlier temporary slumps.
Around 10% participated producers said during the fighting process of the US quantitative easing measures and China's control of imported inflation, copper prices will fluctuate around RMB 67,000/mt along with the release of economic results in the US and China.
Another 35% producers said they couldn't predict future copper prices.