46% of Copper Plate, Sheet, Strip & Foil Producers Pessimistic over Future Copper Prices -Shanghai Metals Market

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46% of Copper Plate, Sheet, Strip & Foil Producers Pessimistic over Future Copper Prices

SMM Insight 05:33:33PM Jun 19, 2012 Source:SMM

SHANGHAI, Jun. 19 (SMM) – With regard to future copper prices, the latest SMM survey of major domestic copper plate, sheet, strip, and foil producers yielded the following insights:

46% of producers anticipate copper prices to fall for the near future, pointing partly to the gradual arrival of the seasonal low demand period. According to recent NBS data releases, China's fixed assets investments fell in May in the sixth consecutive month, and investment growth in the housing sector slid for nine months in a row. Although the home sales have recently reported increases, whether or not the overall market will warm up remains to be seen. Besides, the sluggish Chinese economy compounded market doubts over copper consumption increases, while domestic copper stock pressures persist. In the meanwhile, Spanish government bond yields climbed continuously and banks suffered credit ratings downgrades, adding to uncertainty to Europe's debt crisis. With growing bearish sentiment, investors rushed to the US dollar as a safe-haven and will push copper prices down.
 
18% of producers hold the view SHFE copper prices will fluctuate at current values of RMB 55,000/mt for the foreseeable future. If copper prices continue to fall, it will affect copper smelters' profits and depress their interest in moving goods. Moreover, downstream producers bought at around RMB 55,000/mt, proving some support for copper prices.

The remaining 36% of producers expect unclear copper price trends as uncertainty prevails in the Eurozone economic movements in the future. 
   

 

 

46% of Copper Plate, Sheet, Strip & Foil Producers Pessimistic over Future Copper Prices

SMM Insight 05:33:33PM Jun 19, 2012 Source:SMM

SHANGHAI, Jun. 19 (SMM) – With regard to future copper prices, the latest SMM survey of major domestic copper plate, sheet, strip, and foil producers yielded the following insights:

46% of producers anticipate copper prices to fall for the near future, pointing partly to the gradual arrival of the seasonal low demand period. According to recent NBS data releases, China's fixed assets investments fell in May in the sixth consecutive month, and investment growth in the housing sector slid for nine months in a row. Although the home sales have recently reported increases, whether or not the overall market will warm up remains to be seen. Besides, the sluggish Chinese economy compounded market doubts over copper consumption increases, while domestic copper stock pressures persist. In the meanwhile, Spanish government bond yields climbed continuously and banks suffered credit ratings downgrades, adding to uncertainty to Europe's debt crisis. With growing bearish sentiment, investors rushed to the US dollar as a safe-haven and will push copper prices down.
 
18% of producers hold the view SHFE copper prices will fluctuate at current values of RMB 55,000/mt for the foreseeable future. If copper prices continue to fall, it will affect copper smelters' profits and depress their interest in moving goods. Moreover, downstream producers bought at around RMB 55,000/mt, proving some support for copper prices.

The remaining 36% of producers expect unclear copper price trends as uncertainty prevails in the Eurozone economic movements in the future.