SHANGHAI, Jan. 4 (SMM) – According to the latest SMM survey of 20 major Chinese electric wire and cable producers, 80% of producers believe that copper prices will fluctuate near current levels in early 2013.
The majority said recent US housing data and personal consumption expenditure data was favorable, and China’s Central Economic Work Conference stressed new urbanization, both boosting copper prices somehow. However, the US spending cut problem prevails following a deal on the fiscal cliff, while the European debt crisis remains unresolved. Weak Chinese copper consumption is another factor weighing on copper prices. Meanwhile, cash flows will remain tight as the Chinese New Year holiday approaches and cause copper discounts to expand gradually. As such, copper prices are expected to see no major changes in early 2013.
The remaining 20% of surveyed Chinese electric wire and cable producers can not predict copper price movement for the foreseeable future.