SHANGHAI, Feb. 28 (SMM) – Copper prices posted a rebound after the Chinese New Year holiday, with copper on London Metal Exchange hitting $5,944 per tonne on February 26 and most active copper contract on Shanghai Futures Exchange breaking through 42,000 yuan per tonne.

Will the red metal extend the winning streak in March?

“Monetary easing of major economies and the arrival of peak demand season are likely to drive prices higher, but the rebound will be limited in March,” an analyst from First Futures told SMM in the most recent interview.

Analyst from China Futures Co. agreed with the opinion, adding that high copper inventories will impose a ceiling on price increase. The analyst predicts that SHFE copper may not rise above 44,000 yuan per tonne in March.

“We expect SHFE copper to meet resistance at 45,000 yuan per tonne in March,” analyst from Western Futures said, “considering the tepid demand from euro zone and continued oversupply in global market.”

Nevertheless, some other analysts are more optimistic, basing their views on the upcoming NPC and CPPCC sessions, a pick-up in copper consumption in the high-demand season, and the drought in Chile – the world’s largest copper producer. Analyst from Galaxy Futures still holds that LME copper may climb to $6,300 per tonne in March.  
 

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