(Bloomberg) -- As copper surged to record highs last month, several senior Chinese traders started trying to contact western hedge fund managers whose names ...
-- As copper surged to record highs last month, several senior Chinese traders started trying to contact western hedge fund managers whose names they’d only read in the press. For years, the veteran traders’ privileged insight into their own economy had given them an edge in the copper market , where China accounts for more than half of global demand.But now they were bewildered.
The tug of war between the two is likely to determine where copper prices go next: If tentative signs of a recovery in Chinese buying are sustained, some copper bulls believe the market could be gearing up for fresh record highs in the second half of the year. Among Chinese copper traders and the fabricators who shape raw metal into pipes, wires and other parts used in everything from air conditioners to power transmission cables, the mood remains overwhelmingly gloomy.Even though some of the people Bloomberg spoke to in the past two weeks said they had seen a recent uptick in demand, they were reluctant to suggest that the market is turning around.
Goldman Sachs Group Inc. said copper was in “the foothills of what will be its Everest,” predicting prices would average $15,000 a ton next year, while Andurand called for copper to hit $40,000. Wang Wei, general manager at major copper trader Shanghai Wooray Metals Group Co., which sells refined copper to hundreds of Chinese fabricators, said that demand was “rebounding a bit,” although only to return to similar levels as a year ago.
Copper Prices Chinese Market Copper Market Chinese Traders Pierre Andurand Bloomberg
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