29% Chinese Copper Plate/Sheet, Strip and Foil Producers Bearish toward Copper Price

SHANGHAI, Jan. 25 (SMM) - An SMM survey of 21 domestic copper plate/sheet, strip and foil producers finds 29% of them are bearish toward copper prices. Goods releases after delivery and large inflows of imported copper on the high SHFE/LME copper price ratio will add to supplies. Demand, however, will weaken as a large number of downstream producers suspend production due to the upcoming Chinese New Year holiday. CFTC reports net short positions on COMEX copper were 42,025 for the week ending January 12, the highest over the last year.

Some 29% see copper price consolidate at current levels. Orders at copper processors are stable. SHFE copper outperformed LME copper for now due to yuan’s devaluation. But drops are expected in SHFE copper should the People’s Bank of China intervene to help arrest yuan’s further devaluation. 42% are uncertain of copper price trends.

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