SHANGHAI, Nov. 20 (SMM) – With regard to copper price trend for the foreseeable future, SMM survey of major domestic copper plate, sheet, strip, and foil producers revealed the following insights:
The survey showed that 5% of copper plate, sheet, strip, and foil producers are optimistic over the outlook. These producers expected some economic stimulus measures following the US presidential election and after China's 18th National Congress ended. Besides, the released Chinese economic data indicates that Chinese economy is stabilizing.
Around 42% of the surveyed producers expect copper prices to hold at current levels. In their views, market worries over the US fiscal cliff are growing. This, when combined with slack economic figures in Europe and sluggish domestic demand in China, will restrict copper prices to rebound. Hence, copper prices are expected to fluctuate between RMB 55,200-56,200/mt over the near term before major favorable or unfavorable news appears on the macro front and the fundamentals side.
About 24% of copper plate, sheet, strip, and foil producers are pessimistic, pointing partly to many uncertain factors in both global political and economic situations, as well as global demand outlook. In addition, China's copper stocks have been climbing, and the US dollar index has recently posted strong performance, both of which will weigh copper prices down.
The remaining 29% of producers can not predict future copper prices.