SHANGHAI, Jan. 14 (SMM) – Copper on the Shanghai Futures Exchange fell by its daily limit today, touching a low last seen in July 2009. Copper on the London Metal Exchange also tumbled. Will prices extend losses? Where is the bottom?
Most Chinese futures analysts interviewed by SMM hold that copper prices are still on the way down given weak market fundamentals, strong US dollar and slumping crude oil.
“Investors are likely to exit the market to stop loss with LME copper falling below $6,000 per tonne, which, combined with the strong dollar and expectation for growing copper supply, will push prices lower,” an analyst from Nanhua Futures told SMM.
Analyst from Soochow Futures also believes the prices have not yet hit the bottom. “We expect SHFE copper to dip below 40,000 yuan per tonne, probably heading to 36,000 yuan a tonne,” the analyst said in an interview.
Some of those interviewed, although bearish towards copper prices for the long run, expect the prices to find support in the near term.
“A brief support is expected at 40,000 yuan per tonne following the plunge,” analyst from Minmetals Futures said.
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