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Copper Prices May Continue To Trade Higher, Buying Recommended

ByCommodityOnline
Published 03/31/2014, 03:35 AM
Updated 05/14/2017, 06:45 AM



As of Friday 5 PM, copper prices at the LME were seen trading at $6650, up by 2.5% from its previous close. Likewise, the SHFE copper futures May contract settled the week at Yuan 46330 per MT, up by 2.25%. We could see copper prices rising with their biggest weekly gain in six months on speculation that China may take further steps to improve its economic growth. The Chinese Premier Li Keqiang said in a statement that the country has policies in reserve to deal with any economic volatility this year and can’t ignore “difficulties and risks” from a slowdown in the economy.

Copper also gained as traders were making purchases to cover their short positions, or bets on falling prices. Meanwhile, stocks at the LME have continued to move higher. Stocks rose to 0.269 million tons from 0.266 million tons, having no impact on copper prices. We believe that as long as there is optimism in China, copper prices may continue to trade higher. This morning at LME, copper prices are seen trading at $6649 down by $10 from its previous close. While the May future copper prices at SHFE is up by more than 1% and currently trading at 46820 Yuan/MT. We believe the commodity has the potential to move higher on today’s trading session and recommend buying from lower levels.

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