SHANGHAI, Apr. 3 (SMM) – 40% of Chinese copper wire and cable producers believed prices for July-delivery SHFE copper would hold steady at 46,000 yuan per tonne, according to SMM survey.

With copper consumption recovering in late March, SHFE reported declines in copper stocks. This might help ease oversupply pressure despite higher stocks in bonded warehouses, allowing copper prices to remain stable.

30% of producers told SMM that copper prices were likely to fall further. Despite a backwardation in Chinese markets, buyers became less willing to purchase after the backwardation increased, with most transactions made between traders. In addition, the stabilizing copper prices at the moment were mainly a result of strong expectation for new pro-growth measures from the Chinese government. Nevertheless, the government might not introduce new policies at the beginning of Q2, which would dash such investors’ hopes. That, combined with worsening financing environment and downside risk confronting China’s stock market, was believed to sent copper prices lower.

10% of these producers, however, were bullish, noting that copper prices would stage a rebound after the continuous declines earlier. Meanwhile, as Chinese copper smelters stepped up copper exports, some smelters and traders were sourcing goods in domestic physical markets to deliver long-term orders. This has helped with a rise in backwardation, which would lend support to copper prices.

20% of producers said it was difficult for them to see a clear trend for copper prices.