SHANGHAI, Dec 8 (SMM) - LME copper is expected to move between $9,350-9,680/mt while the most-traded SHFE copper contract is estimated to stand at 68,500-70,500 yuan/mt.
On macro front, Omicron COVID-19 variant will impact the market for a long while, the Fed turned into Eagle tone, and the data from the United States mixed, the US Dollar index will remain strong. Part of the funds is about to be withdrawn from the market ahead of schedule as there is only one week away from the Christmas holiday.
On fundamentals, low inventory is the main factor supporting copper prices. Although the supply is more abundant than before, the operating rates at smelters just maintained at around 80%. Some companies have basically entered a semi-closed state due to the completion of annual trade volume in December, resulting in a lack of market activity.
The operating rates at downstream producers remained stable. The demand is likely to decline as producers are inclined to collect funds at the end of the year. Smelters do not rush to producing as expected and imports are unlikely to increase sharply, leading to a low inventory.
Copper prices are unlikely to trend higher in the short term amid risk aversion sentiment in the market.
