SHANGHAI, Jun. 2 (SMM) – 38% of Chinese wire & cable producers are bearish towards near-term copper prices, SMM’s latest survey of 21 producers indicates.
“The US dollar index rose significantly thanks to upbeat US economic indicators and Fed Chairwomen Janet Yellen’s hawkish remarks, which is bound to weigh on copper prices,” these producers said.
Moreover, they also noted that falling gold and crude oil prices and negative technical factors also bode poorly for copper price.
24% of the surveyed believe copper prices will hold steady, arguing that technical indicators point to a slower decline in copper prices. Commodity market is unlikely to gain ground, though, against expectation for tighter liquidity by the end of this quarter.
19% are still optimistic, basing their opinions on declining copper inventories on both LME and SHFE and narrowing contango in LME copper. In the meantime, relatively high utilization rates at Chinese copper fabricators and pro-growth measures will benefit copper market.
19% are uncertain of copper price trends.
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