SHANGHAI, Apr. 2 (SMM) - According to the latest SMM survey of 22 domestic electric wire and cable producers, around 55% of producers expect copper prices to keep fluctuating at the existing price range. Orders improved, but spot supply pressures remained high. The arrivals of imported copper narrowed spot premiums, and even turned to discounts, but premiums for imported copper surged. Those producers believe that copper prices will keep fluctuating at the existing price range, and wait for a further market direction.
Approximately 18% of producers believe that copper prices will rebound. Their optimism is mainly because it is a traditional peak demand period in 2Q, and because there is high possibility that China’s economic figures may remain positive in April after having improved in March. Besides, scrap copper has not lost its consumption advantages, and this will bolster copper consumption to some extent, and this will also encourage consumption of copper stocks during a seasonally high demand period.
About 18% of copper producers expect copper prices to drop along with the lingering European debt issues, a strong dollar, as well as surging LME copper inventories, which grew by more than 150,000 mt only in one month.
The rest 9% are unclear about the trend.