The copper “bulls” received a strong boost at one of the sector’s largest annual meetings in Hong Kong, with the message that The recent drop in metal prices is not expected to last.
In an electronic survey conducted among attendees at the LME Asia Metals Seminar, Copper led the vote of metals with the best prospects for the rest of 2024. The hundreds of attendees represent a broadly cross-section of the world of metals, from buyers and financiers to users and traders.
Copper’s outlook is one of the main topics of discussion after bullish sentiment in Western financial circles led the metal to hit a record high last month, only to lose momentum later. Although the rally was driven by a widespread view that the world’s copper mines will struggle to meet rising demand from green industries, The persistent weakness of China, the main consumer, and weak physical indicators have dragged it down again.
“We are relatively optimistic about copper prices” in the medium and long termsaid Junjie Lan, portfolio manager at Chinese firm DH Fund Asset Management, in an interview during the event. The fund manager could step in when prices drop a little further, although “to what level, it’s hard to say,” Lan added.
Still, data presented in Hong Kong by Juno Xinze Yao, head of international business research at Horizon Insights, showed that China’s consumption was lower every month from February to May compared with the same period last year. By 2024 as a whole, demand for real estate will decline, even if other sectors will eventually grow, Yao said.
