SHANGHAI, Jul. 15 (SMM) – China’s GDP was reportedly up 7% in the second quarter, higher than the 6.8% forecast. Will the better-than-expect data benefit copper prices?
“Copper price is likely to stabilize in the short term following recent plunges, and the positive Chinese data may lend support to the red metal,” said analyst of Guosen Futures.
For the long run, however, the analyst believes weak demand will continue to weigh on price. “The ICSG sees a slight surplus in global copper market this year, while China’s copper consumption seems to remain weak as downstream sectors benefited little from stimulus measures,” the analyst explained.
“With influence of Chinese stock market receding, copper price will be more vulnerable to fundamentals,” analyst of Dayou Futures told SMM, “we reckon that $5,240 per tonne should be the lowest for the year, and the price may move in the $5,500-6,000 range for the long term.”
Analyst of First Futures said the bearish mood in the market eased some following the economic releases, but copper price remains under pressure. “In fact, we are not optimistic about copper market in Q3.”
September-delivery copper on SHFE was up 0.32% by 11:20 today.
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