Unclear Downstream Consumption Casts Shadow over Future Copper Prices

SMM Insight 10:19:42AM Feb 23, 2012 Source:SMM

SHANGHAI, Feb. 23 (SMM) –The China Copper & Aluminum Summit will be held in Shanghai on March 21, and what are focal points of participants? SMM finds after keeping contact with market insiders, most of them feel unclear about future copper price trends, and are also pessimistic towards China's demand for the industrial metal. 

A representative of China Metal Recycling (Holdings) Ltd. told SMM that, although the central government mentioned many times to "Fine tune the policy timely and appropriately" actual implementation is slow and cash flows are still tight.

"Copper market activity for the time being is better than that before the Chinese New Year holiday period, but is far more sluggish than the same period a year ago, which can be directly reflected by copper prices", this representative said. "Market transactions are largely made by traders who use copper as a financing vehicle, but just a small number of downstream producers participate in the market", he added. In this context, market activity during the forthcoming March and April, traditional high demand period, will likely remain light.

The copper processing industry is a low-tech industry, but needs to use a large sum of money for raw materials. How should copper processors adjust their strategies to stabilize development in the face of a credit crunch? In response to these problems, SMM invites leaders of China Hailiang Group and Far East Holding Group to present exclusive reports on how to move out of development difficulties.  

Countdown to the China Copper & Aluminum Summit: 28 Days
Contact: Yin Jie                Tel: 021-3133 7236
Mobile: 1379 539 4682          Email:yinjie@smm.cn 
Or
Contact: Fan Weiyao           Tel: 021-3133 7280
Mobile: 1376 4075 875         Email:fanweiyao@smm.cn 


 

Unclear Downstream Consumption Casts Shadow over Future Copper Prices

SMM Insight 10:19:42AM Feb 23, 2012 Source:SMM

SHANGHAI, Feb. 23 (SMM) –The China Copper & Aluminum Summit will be held in Shanghai on March 21, and what are focal points of participants? SMM finds after keeping contact with market insiders, most of them feel unclear about future copper price trends, and are also pessimistic towards China's demand for the industrial metal. 

A representative of China Metal Recycling (Holdings) Ltd. told SMM that, although the central government mentioned many times to "Fine tune the policy timely and appropriately" actual implementation is slow and cash flows are still tight.

"Copper market activity for the time being is better than that before the Chinese New Year holiday period, but is far more sluggish than the same period a year ago, which can be directly reflected by copper prices", this representative said. "Market transactions are largely made by traders who use copper as a financing vehicle, but just a small number of downstream producers participate in the market", he added. In this context, market activity during the forthcoming March and April, traditional high demand period, will likely remain light.

The copper processing industry is a low-tech industry, but needs to use a large sum of money for raw materials. How should copper processors adjust their strategies to stabilize development in the face of a credit crunch? In response to these problems, SMM invites leaders of China Hailiang Group and Far East Holding Group to present exclusive reports on how to move out of development difficulties.  

Countdown to the China Copper & Aluminum Summit: 28 Days
Contact: Yin Jie                Tel: 021-3133 7236
Mobile: 1379 539 4682          Email:yinjie@smm.cn 
Or
Contact: Fan Weiyao           Tel: 021-3133 7280
Mobile: 1376 4075 875         Email:fanweiyao@smm.cn