SHANGHAI, Oct. 14 (SMM) – Customs data indicate China’s imports of unwrought copper and copper semi increased 16% on the month to 390,000 tonnes in September.
How will the trade data affect the near-term copper market?
An analyst from Guotai Jun’an Futures told SMM that rising imports may be a sign of improving demand from China, but the record copper concentrate imports will presage high copper output at Chinese smelters, meaning oversupply pressure will grow. "As such, we still see downward room for copper prices," the analyst said in the latest interview.
An analyst from Dayou Futures agreed, saying that expectation of increasing copper supply foreshadows a rise in copper inventories, which is bound to weigh on copper prices for the long run.
“That said, the surprisingly upbeat trade data in China indicate demand in China’s local market did not weaken. Copper market may briefly gain support from the positive figures, but any buoyant effect will be short-lived,” the analyst added.
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