SHANGHAI, Jun. 6 (SMM) – With regard to copper price trends for the foreseeable future, the latest SMM survey of major domestic copper tube/pipe producers revealed the following:
50% of the surveyed producers are pessimistic about the outlook. Greek people oppose the pro-austerity Left-wing Party to come to power, raising market worries over Greece exiting the euro zone area. Coupled with climbing Spanish bond yields, risk aversion will help the US dollar index strengthen ahead of Greek election on June 17, weighing on commodities including copper. Besides, domestic markets will gradually enter the seasonal low demand period. Hence, these producers expect SHFE copper to slide to around RMB 50,000/mt in the near future.
30% of these producers see price fluctuating at current values, pointing to the fact that downstream producers' buying at the lows can provide strong support for copper prices. Furthermore, the government has recently introduced some stimulus measures, which will likely help weak consumption improve. Nevertheless, copper prices will continue to move weakly before actual copper consumption turns better.
The remaining 20% of producers cannot predict about future copper prices.