Copper market to go up slightly

BEIJING (Asian Metal) 1 Apr 09 – 3-month copper on LME moved up on Tuesday, and copper futures on SHFE also began to rebound. Market sources believed that the prices may continue to increase after a short-lived consolidation.Asian Metal Copyright With the favorable and unfavorable factors, the source anticipated that the prices may continue to move up in the following days.Asian Metal Copyright

An official from the Shanghai-based sale branch of Daye Non-ferrous Metal reported that copper futures on LME went higher on Tuesday, since the demand from China, the world's biggest buyer of the metal, is likely to stay firm into the next quarter. “However, I think the price may give back gains when it reaches RMB37,000/t (USD5,409/t),” said the source, explaining that the bullish season for copper consumption will come to an end late April. The source concluded 100t of copper cathodes at around RMB34,600/t (USD5,058/t) this Tuesday, almost unchanged compared to the previous day.Asian Metal CopyrightThe source analyzed that China’s demand does pick up gradually, but consumers are hesitant to purchase due to the volatile prices.Asian Metal Copyright

The source analyzed that China’s demand does pick up gradually, but consumers are hesitant to purchase due to the volatile prices. “Our sales volume every day is decreasing slightly,” said the source, adding that they are active in selling the metal and hold around 1,000-2,000t of copper cathodes on hand.Asian Metal Copyright The source concluded 100t of copper cathodes at around RMB34,600t USD5,058t this Tuesday, almost unchanged compared to the previous day.Asian Metal Copyright

A trader in Xinjiang said that as demand for copper cathodes recovers in China, their imports reach 1,000t in March, up from 500-600t in February. “China's imports for copper cathodes soared in February to a record 271,000t, helping drive a rally in London and stemming a rising tide of metal on LME,” said the source, adding that the supply of raw materials, copper concentrate and copper scraps, remains tight, giving strong support for copper cathodes prices. The source offers copper cathodes at around RMB34,700/t (USD5,073/t) this Tuesday, up by about RMB100/t (USD15/t) compared with that this Monday.Asian Metal CopyrightA trader in Xinjiang said that as demand for copper cathodes recovers in China, their imports reach 1,000t in March, up from 500-600t in February.Asian Metal Copyright

The source revealed that investors regain confidence for commodity markets, and the sentiment recovers slightly in copper market. With the favorable and unfavorable factors, the source anticipated that the prices may continue to move up in the following days.