SHANGHAI, Jun. 15 (SMM) – 32% of China's copper smelters are bearish towards near-term copper price outlook, SMM's survey of 22 smelters shows.
LME and SHFE copper prices fell below all near-term moving averages and lacked support from bargain hunters. Coupled with sluggish economic indicators from China and weak consumption, copper prices are set for more losses, these smelters told SMM.
27% of the surveyed see copper prices remaining range-bound. The US dollar index will fluctuate in a wide range in the short term given uncertainty over the timing of Fed's interest rate hike. This will constrain both copper price gains and declines.
Limited capital inflows into commodity market also means copper prices may not be one-sided.
Only 9% are bullish, arguing that copper has been oversold and is expected to rally.
Another positive factor, these smelters said, should be the falling copper output resulting from smelter maintenance and declining copper imports.
The remaining 32% are uncertain of copper price trends.
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