SHANGHAI, Jan. 15 (SMM) – SMM conducted a survey of 21 Chinese copper wire rod producers concerning copper price trend for the foreseeable future.
Based on the survey, 57% of producers expect copper prices to fluctuate at current levels for the near future. Macroeconomy has recovered, but copper consumption remains slack. Currency devaluation expectation brought by recovering global economy, low global interest rate, as well as continuous QE measures is the main factor supporting current copper prices. Nevertheless, in the context of high Chinese copper stocks and the debt crisis in both the US and Europe, copper prices are unlikely to move out of current trading range over the short term.
Approximately 14% of copper wire rod producers are pessimistic. Despite a last-minute agreement on the US fiscal cliff issue, the US debt ceiling problem exists. Combined with no turnaround in Chinese copper demand, copper prices still face downside room.
Around 10% of producers are positive over future copper prices. With the European debt crisis already experiencing the hardest time, global economy is recovering slowly. These producers are also confident that downstream consumers will replenish stocks as the Chinese New Year holiday draws near.
The remaining 19% of producers can not predict future copper prices.