SMM Copper Price Forecast (Sept. 26-30)

SHANGHAI, Sept. 26 (SMM) –Last week, SHFE copper prices also fell sharply from RMB 65,000/mt and hitting the daily trading loss limit on Friday. SHFE 1112 copper contract prices fell to a low of RMB 56,940/mt, with losses for the week reaching 15%. As of Friday afternoon, positions for all SHFE copper contracts increased by 18,958 lots and trading volumes were up by more than 1.8 million lots. Long investors closed positions of more than 20,000 lots on Friday due to bearish sentiment, with risks of another recession overshadowing financial markets. 

SHFE copper prices next week will remain soft given weak domestic stock markets and tight cash flows at producers at the month’s end.

In spot markets, as copper prices slumped, hedge traders were reporting profit-taking activity, while long investors chose to close positions. Copper importers were active moving goods to earn profits at current prices. Market supply was sufficient, so copper premiums failed to maintain high. Fewer downstream producers entered the market after copper prices fell, while traders were also cautious, preferring to wait until a stable price trend was visible.

In the upcoming week, downstream producers will prefer to stand on the sidelines due to tight cash flows.