The most-traded March copper contract on the Shanghai Futures Exchange rose about 1 percent to 45,800 yuan a tonne on Wednesday, on hopes that stimulus measures would boost demand. They are headed for a 7 percent drop for the year, a second straight drop in a row. Copper was headed for a 14 percent drop for the year, its worst decline since 2011, on concerns about China, which consumes some 45 percent of the world's copper, and a looming supply surplus.
"Copper demand growth (in China) has cooled after mid-December. Most construction projects have been stopped in the northern part of China due to the winter," said analyst Li Chunlan at CRU in Beijing, adding that weaker oil and commodity prices were also hurting prices. "We expect prices to touch a bottom in the first quarter and rebound from the second quarter because seasonal demand will pick up from April." Investors are hoping Chinese authorities will roll out more stimulus measures to support the economy and boost demand for the metal.
Comments
Comments are closed.