SHANGHAI, Sept. 27 (SMM) –With regard to recent copper price trends, a recent SMM survey of 20 major domestic electric wire and cable producers revealed the following insights:
Approximately 55% producers believe copper prices will continue to fall. The highly expected Federal Reserve’s (Fed) meeting only announced to buy long-term Treasury bonds and sell short-term debts, and warned of “significant downside risks” in the US economy, depressing investor confidence. Some producers see little possibility in the implementation of QE3 in the near term since issuance of large amount of money will unnecessarily boost the US economy, and will likely cause global inflation. Therefore, the US dollar faces no risks of falling down, which will restrict copper’s downside room.
Around 25% producers are optimistic towards the copper outlook. It’s worth noticing that they raised this viewpoint before the Fed’s final decision. They believed at that time the Fed would take some measures to improve weak US economy, and the Euro-zone leaders were also making efforts to solve Greek debt problems. Besides, they believed stockpiling before China’s National Day holiday would also support copper prices. Hence, these producers held optimistic attitudes.
About 5% producers believe copper prices to remain flat. They say current negative news on the macro-economic front will continue to dampen copper prices, but Chinese buying at the lows will support copper prices.
The remaining 15% producers can’t predict about future copper prices.