SHANGHAI, Jun. 11 (SMM) – 40% of the 20 copper wire rod makers surveyed by SMM expect copper prices to consolidate in the near term.

Despite concerns arising from the probe into metal financing at the Port of Qingdao, these producers hold that copper prices will unlikely move lower, as money supply at the halfway point of this year is ampler than a year ago.

20% of those producers show stronger pessimism, arguing that output will increase following completion of smelter maintenance.

The ongoing investigation at the Port of Qingdao which reportedly prompted foreign banks to halt new financing to some Chinese clients will lead to a shift of copper from Chinese bonded zones to LME approved warehouses or China’s physical markets, compounding oversupply pressure. Meanwhile, consumption is also weakening with the start of low demand season.

5% of them, however, remain bullish. Short squeeze has been going on for two months and will continue before the delivery of SHFE 1406 copper contracts. Moreover, the modest pro-growth measures introduced by Chinese government will also bolster copper price.

The remaining 35% are unclear about copper price outlook.