SHANGHAI, Jan. 23 (SMM) – The latest SMM survey of major Chinese copper plate, sheet, strip and foil producers yielded the following insights with regard to copper price trend for the foreseeable future:
Approximately 46% of producers expect copper prices to hold flat with current values, and due largely to the following factors. First, despite a last-minute US fiscal cliff deal, the US debt ceiling problem exists. Second, the euro zone core consumer price index for December rose 0.5% MoM, an indication of recovery in the region’s consumption. However, the European debt crisis remains unresolved, while the unemployment rate in the euro zone remains high.
The survey displayed that 36% of producers are optimistic over the outlook. In their views, global economy has begun recovering slowly, with economic data in both China and the US continuing increases. Besides, these producers also anticipate that downstream producers will replenish some stocks ahead of the Chinese New Year holiday.
The remaining 18% of copper plate, sheet, strip and foil producers can not predict future copper price movements.