SHANGHAI, Apr. 7 (SMM) – 43% of China’s wire & cable producers are bullish toward copper price trends in the near future, the latest SMM survey shows.
The downbeat nonfarm employment in the US in March helped weigh down the US dollar index and boosted commodity, precious metals prices and US stocks.
In the meantime, an easing of financial pressures in early April will incentivize downstream producers to purchase. Moreover, spot copper prices have been above SHFE front-month copper contract prices recently, which will support copper future prices. When combined with an acceleration of infrastructure construction, copper prices should rise.
5% see copper prices relatively stable in the near term, though total positions on LME copper have reached a record high of 380,000.
The boom season and sluggish economy in China will constrain either gains or declines in copper prices. The latest economic indicators from China suggest ongoing deflationary pressure. This, however, also fueled anticipation for additional stimulus measures from China. As such, some producers hold that copper prices may be directionless in the short term.
19% are bearish, partly citing lackluster orders. SHFE copper prices have risen by 7,000 yuan per tonne since the start of the year, and met resistance at 45,000 yuan per tonne. That, plus crude oil supply glut and a strong US dollar, will bode poorly for copper prices.
The remaining 33% are uncertain of copper price trends in the near term.
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