SHANGHAI, Mar. 6 (SMM) –What's the copper price trend for the foreseeable future? The latest SMM survey of major domestic copper wire rod producers yielded the following results:
60% of these producers are optimistic about future copper prices. They believe recent copper price increases are pushed by funds rather than actual consumption. The European debt crisis doesn't seem to have room to worsen further. Upbeat economic data, US economic recovery, and the continuously falling LME copper inventories will all help lift copper prices. SHFE copper prices, though, will post weaker performance than LME copper, with prices expected to challenge RMB 63,000/mt.
20% of the producers surveyed by SMM predict copper prices will continue to lurch around RMB 60,000/mt. Domestic copper consumption is relatively weak at present, as actual market transactions are restricted when spot copper prices climb to the RMB 60,000/mt benchmark. Market players are waiting for more policy guidance from China's NPC and CPPCC sessions. In this context, copper prices will fluctuate over the near term.
The remaining 20% producers are unsure about future copper prices.