Following China’s Labour Day holidays, the US and the Eurozone will make interest rate announcements, and copper prices will be more influenced by macroeconomic expectations. The United States GDP numbers for the first quarter indicated that. While inflation is still strong, the economy has slowing down.
The direction of copper prices will also be influenced by the US non-farm statistics from ADP and the April PMI, both of which are due over the holidays.
Sharp price cuts don’t seem to have much of an impact on domestic consumption, which will help keep prices stable.
In May 4-5, most active Shanghai Futures Exchange copper agreement prices are predicted to fluctuate between 66,000 and 67,500/metric tonnes.
While the London Metal Exchange copper prices will deals between 8,400 dollar and 8,650/metric tonnes the following week.
In May, it is expected that sellers will increase their quotes on the spot market. After the Labour Day holiday, downstream purchasers will replenish their inventories. While in May 4-5, spot premiums are anticipated to fluctuate between 30 and 70 yuan/metric tonnes.