SHANGHAI, Apr. 10 (SMM) – According to a most recent SMM survey of 21 major domestic copper wire rod producers (total capacity: 3.8 million mt/yr), they took a mixed attitude towards copper price trends.
33% of them believe copper prices should continue to move between RMB 54,000-55,000/mt in the near term. Copper prices have fallen by RMB 6,000/mt since before the Chinese New Year holiday, and the market has absorbed disappointment of weak demand. Some bargain hunters will enter the market as copper prices are below RMB 55,000/mt, which will give support to prices. Without clear directions from macroeconomic news, copper prices should remain at current levels.
29% of enterprises surveyed sell copper prices falling. The growing LME copper inventories show that global copper consumption slows. Recent PMI mostly fell short of expectations, adding to market uncertainties if global economy will continue to improve. Besides, shorts continued to increase positions, so copper prices will maintain downward track.
14% of them believe copper prices should rebound in the near term. Copper consumption will improve in Q2. Besides, scrap copper supply tightness increased after copper prices plunged, and this will restrict copper semis producers and force copper smelters to cut output due to raw materials shortfalls. In addition, the strike in Chile will also help ease spot copper oversupply. As such, they anticipate copper prices will rebound to RMB 56,000/mt in the near term.
24% are uncertain of copper price trends.