SHANGHAI, Jul. 27 (SMM) – 54% of copper smelters in China hold that copper price will remain range-bound in the near future, SMM survey of 22 smelters shows.
CFTC report indicated 20,758 net long positions in copper for the week ending July 14, up 4,671 week-on-week. However, SHFE forward-month copper contracts faced strong selling pressure and positions on LME copper have inverted to net shorts. This divergence is expected to trap copper prices in the current range.
In China’s markets, large spot premiums will proffer support to futures price, but unimproved demand means any price increase will be capped.
14% of the surveyed are bearish toward copper price citing a stronger US dollar powered growing rate hike hope. Besides, they also noted that technical indicators also suggest downward pressure on copper price.
Still, 14% see copper price to rally, basing their opinion on growing bargain hunters following recent slump and profit-taking of shorts.
The remaining 18% are uncertain of copper price trends.
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