SHANGHAI, Oct. 9 (SMM) – The latest SMM survey of 20 domestic copper wire rod producers yielded the following insights with regard to copper price trend for the foreseeable future:
55% of these copper wire rod producers SMM contacted expect copper prices to fluctuate at the highs for the near future, pointing to the fact that copper prices are now mainly driven by market news instead of actual demand. Furthermore, LME copper prices face great resistance at levels above USD 8,400/mt while risk aversion still prevailed before China's National Day holiday. As such, these producers see copper prices lurching at current levels over the near term.
35% of these copper wire rod producers hold the view that copper prices will rise, pointing partly to PBOC's increased efforts in capital investments. A drop in the US initial jobless claims indicates relatively optimistic outlook for the US economy. Improvement in cash flows and the macroeconomic front will push copper prices higher further. However, as copper's fundamental side is not seen to improve noticeably, any increase in copper prices should be limited.
The remaining 10% of these producers cannot predict future copper prices.