SHANGHAI, Aug. 17 (SMM) - Few copper tube/pipe producers in China are optimistic about copper price in the short term, SMM's survey of 20 producers reveals.
55% of the surveyed hold that copper prices will extend losses recently, considering gloomy PPI data and slipping copper imports.
Growing copper stocks also kindled worries among these producers. LME copper inventories have been rising for several weeks, and SHFE also reported more than 10,000 mt of inventory growth last week.
The oversupply in China will be aggravated with smelters resuming production and higher SHFE/LME copper price ratio driving imported goods into Chinese market. These factors, combined with a lack of buying activities during slack season, are believed to send copper price down.
5% of the respondents see copper price to remain range-bound, arguing that mixed data may leave the Fed hesitant about interest rate hike, capping the increase in the US dollar index. These producers also believe the stabilizing of Chinese yuan will underpin commodities prices.
The remaining 40% consider price outlook uncertain.
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