SHANGHAI, May 30 (SMM) – With regard to copper price trends for the near future, a recent SMM survey of 20 major domestic electric wire and cable producers yielded the following:
85% of producers are pessimistic, believing SHFE copper will retreat to RMB 52,000/mt. The latest PMI data from both China and Europe was below the boom-bust line, an indication of contraction in the manufacturing sector there. This means weak copper demand. In addition, the risk of Greece exiting the euro zone has greatly depressed market confidence, propelling investors to buy the US dollar as safe havens. Hence, these producers expect copper prices to fall for the near future.
15% of these producers see prices lurching around their current values. They hold the view copper prices have fallen to their psychological levels and enticed a lot of downstream producers to buy, which will support copper prices somehow. However, copper prices also lack impetus to trend higher in the face of slack domestic consumption as well as turbulent international economic environment.