Copper prices on the London Metal Exchange have met resistance from $6,500 per tonne and the July-delivery copper on Shanghai Futures Exchange was hovering near 46,400 yuan.
Is the red metal gathering impetus for further rebound? How far will copper prices go this year? Analyst of China’s Zhaojin Futures expects the El Nino phenomenon to send copper prices to a high of 50,000 yuan per tonne this year.
“The recovery in China’s housing market may lead to an upturn in metal demand, while supply is relatively stable for now,” analyst of Meierya Futures told SMM.
“The El Nino which may hinder operations at copper mines will serve as an extra motivation as well, so we see the peak price for copper at about 50,000 yuan a tonne this year,” the analyst added.