Copper Prices to Under Pressure amid a Stronger Risk Aversion Sentiment in the Market and a Slow Recovery of the Domestic Economy

SHANGHAI, May 16 (SMM) - On the macro front, copper prices will be greatly influenced by the short-term debt ceiling and banking crisis overseas. If a consensus cannot be reached on the debt ceiling issue soon and the banking crisis fail to alleviate, the market players will be more panic. A stronger risk aversion sentiment will then fill the copper market, and risky assets such as copper are more likely to fall in the future. The Chinese economy has failed to maintain growth after a short-term demand recovery and is expected to rise slowly thereafter, which will still offer some support to copper prices in the short term. The most-traded SHFE copper prices are expected to be 65,000-68,000 yuan/mt in May, and LME copper prices will be $8,300-8,700/mt.