SHANGHAI, Apr. 10 (SMM) – China’s CPI growth held steady at 1.4% in March, and the decline in PPI slowed for the first time since last July to 4.6%. Copper prices on Shanghai Futures Exchange edged higher Friday morning in response.
Will Chinese government introduce more stimulus measures following the better-than-expected economic reports? Will copper prices take impetus to extend rebound?
“The PPI, though falling more slowly, remained weak, reflecting the real economy has not yet recovered,” an analyst from Dayou Futures told SMM, ”this means more easing policies are still needed to bring funds into real economy, that plus the growing long positions in copper, may herald further rally in copper prices.”
Analyst from Shanghai CIFCO Futures also expected continued rise in copper prices, citing the arrival of peak demand season and disrupted production at large copper mines. But the analyst says the rebound may be limited.
“The inflation and PPI data beat forecast, but markets are far from optimistic about China’s Q1 GDP due out next week, this may place pressure on copper,” analyst from Ruida Futures suggested a cautious investment.
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