SHANGHAI, Oct. 18 (SMM) –A recent SMM survey of 20 major domestic copper tube/pipe producers revealed the following insights with regard to recent copper price trends.
About 20% producers in the survey believe copper prices will rebound recently. However, it’s worth noticing that most of these producers say this round of increases will be slight and temporary, with prices expected at USD 7,500/mt, while others believe prices to increase to the USD 7,700/mt level. Due to unresolved Greece’s debt problems, high unemployment rate in the US, as well as poor copper semis consumption, copper prices are unlikely to increase and even face the risk of moving downside.
Approximately 20% producers are pessimistic towards the outlook. They believe Greece’s debt issues can’t be fundamentally resolved in the short term, although debts problems in the Euro-zone tend to ease at present. Meanwhile, as tight credit situation will continue, there is little chance of large restocking activities in the near term. Hence, copper prices are likely to fall further.
Approximately 15% producers expect copper prices to remain at current levels, with the same view that Europe remains the biggest factor impacting copper prices. These producers believe copper prices will narrowly fluctuate with the arrival of all kinds of news in the Euro-zone area.
The remaining 45% producers surveyed believe a clear recent copper price trend is invisible.