ShreeMetalPrices: Copper prices are expected to be rangebound due to weak supply and demand


The number of initial jobless claims in the United States increased by 9,000 at 225,000 2 weeks ago, in keeping with market expectations. The number in the US continued jobless claims risen significantly to 1.7 million on December 17, reaching their highest level since early Feb 2022.

To some extent, the market’s worries about the US Fed’s fast rate hikes were alleviat by the US jobs market’s downturn. But worries about the United States economic recession were increase. The December monetary policy meeting in Japan demonstrat that maintaining yield curve control (YCC) is necessary before the price goal can be attaine steadily and persistently.

The yen then climbed once more to about 0.75 against the US dollar. On Jan 8, 2023, the General Administration for Customs in China said that it would support the orderly & steady restoration of freight & passenger travel at border ports and that the results of all entering personnel nucleic acid tests would be cancel.

The market’s excitement on China’s re – opening has steadily faded, and risk appetite has dropped. As a result of China’s easing of COVID-19 control rules.

On a macro level, manufacturers in several north Chinese provinces hurried to fulfil their orders as more employees who had caught the COVID-19 virus returned to work. The pandemic breakouts had a significant impact on southern companies. The downstream companies’ restocking also hamper by the sustained high copper prices.

Copper Prices Forecast

ShreeMetalPrices research noted that as of 30th Dec, the average inventory was 18,300 metric ton. The import reports were cap at import loss of more than 620 yuan/mt. And the bonded zone inventories increased by 5,100 metric tonnes.

The average inventory was low, and the import window stayed closed, barring the import of copper. The exact terminal usage fell as COVID-19 infections spread.

Since there is generally low supply and low demand for copper. ShreeMetalPrices expects that prices will stay rangebound in the near term.

The most actively trade SHFE copper is forecast to fluctuate this week between 65,400 – 67,100 yuan/metric ton. While LME copper will trade between $8,250 – 8,400 $/Metric ton.

This week, The spot market will continue to have a limited supply and sluggish demand. In the near term, cargo holders are unlikely to dump commodities for cash on the markets.

Prior to the delivery of SHFE – 2301 copper contract, premium will tend to rise. And also the spot prices seem to be expect to decline given the low domestic inventory. This week, spot premiums are anticipate to fluctuate between 120 to 200 yuan/metric ton.