SHANGHAI, Sept. 28 (SMM) –Based on a recent SMM survey, copper semis processors are generally purchasing on an as-needed basis before China's National Day holiday on concerns copper prices will tumble again.
Negatively affected by risks of a Greek debt default, copper prices slumped constantly so far in September, with the monthly loss reaching 19.55%. Euro-zone leaders haven't given a satisfactory answer to the debt issues in Greece, while economy in the US hasn't seen any signs of recovering, spurring speculations global economy will dip into another recession, and dampening domestic copper processor interest in building inventories, even as the Chinese one-week holiday approaches.
Most enterprises in the survey say they are making purchases of raw materials on an as-needed basis and avoid overstocks of finished goods inventories, while others express no intention in building stocks since they plan to suspend production during the China's National Day holiday period.
As of September 28th, daily spot copper premiums in the past three days averaged at positive RMB 240/mt, RMB 165/mt, and RMB 125/mt, respectively, continuously moving lower for the week, and also proving a low market demand for refined copper.