SHANGHAI, Mar. 30 (SMM) – Copper prices have registered a big rally from low levels seen last November, but recently, prices fell back.
What’s outlook for copper prices in April, a traditional peak demand period?
“There is high chance to see price declines in copper market in April, as supply surplus will become prominent in the month,” said an analyst from Guotai Junan Futures at SMM latest interview.
If copper inventories across the global remain high, market expectations over demand outlook during the upcoming traditional peak demand period will fail to materialize, and this will weigh down the price.
“China’s monetary policy is expected to hold stable for the foreseeable future, and policy restrictions on property market in some major cities will also curb new investment,” the analyst further explained.
Another analyst from Galaxy Futures also echoed his view, explaining that consumption in Chinese market will turn out to be disappointing.
One analyst from Chaos Ternary Futures noted in SMM interview that changes in SHFE copper inventories will be the key factor, expecting SHFE copper to range 37,500-40,000 yuan per tonne, with close attention on macro-economic news in the second half of the month.
Some other analysts also expected copper prices to fall first, and then rise in April.
“LME copper is estimated to trade around $5,000 per tonne in April, mainly ranging between $4,800-5,200 per tonne,” said an analyst from Dayou Futures.
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