The Non-ferrous Metals Revitalization Plan fails to boost copper prices

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For several weeks now, copper prices on both the domestic and international markets have shown a pattern of consolidation and fluctuations. The overall holding levels of copper on the LME remain low, indicating that both buyers and sellers are showing signs of fatigue. On the domestic front, the State Council’s regular meeting on the 25th reviewed and approved in principle the plan for the revitalization of the non-ferrous metals industry; on that same day, futures prices for copper, aluminum, and zinc in Shanghai opened higher before experiencing slight declines. The author believes that the rebound in domestic consumption after New Year’s Day seems to be coming to an end, and the seasonal peak in copper consumption has not arrived as it did in previous years; copper consumption remains stagnant. Policy incentives will not change the trend of volatile prices for non-ferrous metals in the short term, and copper prices will continue to face pressure. 　　 　In short, demand in the world’s major economic regions – Europe, the United States, and China – remains weak. It is unlikely that prices of non-ferrous metals will see an improvement in the short term. While prices in international markets remain weak, China’s various economic stimulus measures help to keep domestic prices of non-ferrous metals from falling too sharply. However, as imports increase, domestic supply pressures will rise, and there is a tendency for these prices to align with those in international markets.