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25% of Chinese Copper Tube/Pipe Producers Bullish toward Copper Prices
Apr 20,2015 16:29CST
price review forecast
Source:SMM
25% of Chinese copper tube/pipe producers are bullish toward copper prices in the near term citing ample money supply and rallying European and US stocks.

SHANGHAI, Apr. 20 (SMM) – 25% of Chinese copper tube/pipe producers are bullish toward copper prices in the near term citing ample money supply and rallying European and US stocks, SMM’s latest survey of 20 companies shows.

Strong market sentiment, combined with rebounding crude oil prices should support stocks and commodity markets, boosting copper prices, these producers believe.

In addition, spot premiums in China’s copper market grew after the expiration of SHFE 1504 copper contracts, and large traders have purchased lower-priced goods actively recently. The SMM survey also shows operating rates at copper tube/pipe producers increased. These factors are believed to push up copper prices.

25% are neutral, noting that both long and short positions in LME copper held high.
The recent surge in China’s A-share market is due to capital inflows, investor confidence, and government encouragement, rather than bright performance of listed companies. Once investors’ capital inflows decrease, China’s A-share market growth should slow. Thus, the support from rallying stock market to copper prices will be limited.

10% are bearish, arguing that unresolved Greek crisis may still affect commodity market. Furthermore, China’s foreign trade data were also sluggish. Hebei Financing Investment Guarantee Group – the second largest guarantee company in China – lost guarantee ability, which is also expected to impact financial market.

The remaining 40% are uncertain of copper price trends.


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China copper price forecast

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