SHANGHAI, Apr. 21 (SMM) – Kaisa Group became China’s first real estate company to default on dollar-denominated bonds after missing USD 52 million in interest payments. The news has fueled concerns over China’s housing market. June-delivery copper on Shanghai Futures Exchange closed 1% lower for Monday’s night trading.
Will copper prices extend losses on the negative news?
“The report on Kaisa’s default will trigger concerns over China’s property market, which is one of the major copper consumers, in turn rekindling worries about copper consumption,” analyst from First Futures told SMM, “but the central government is unlikely to leave the housing market unattended.”
“We see strong resistance for SHFE copper at 44,000 yuan,” he added, “but any sharp decline is unlikely in the near term.”
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