SHANGHAI, May 26 (SMM) – 24% of Chinese copper tube/pipe makers are bullish towards copper prices, SMM’s most recent survey of 20 producers indicates.
These producers hold that a more than 12% copper output fall in the past two months caused by maintenance will lend support to prices. Meanwhile, copper consumption should be steady, reflected by continuous declines in copper inventories reported by SHFE.
42% of these producers believe that copper prices will remain range-bound, partly citing stagnant gold and crude oil prices and low trading volumes.
Moreover, the HSBC’s China manufacturing PMI for May improved on the month, but remained below 50, which may also leave copper prices directionless.
10% of producers expect copper prices to fall in the near term, as technical indicators point to stronger resistance. These producers also noted the decline in copper futures trading resulting from strong Chinese stocks will pressure copper prices as well.
The remaining 24% are uncertain about the near-term price trends.
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