Will copper prices continue to rise?

Copper prices have continued to rise since the beginning of the year, helped by the Chinese government's stimulus measures. Prices on the Shanghai Futures Exchange registered a 1.98 percent gain, while copper on the London Metal Exchange (LME) rose 1.7 percent in three months. Most analysts are optimistic about the price of copper this month, suggesting that copper consumption will rise significantly in the second quarter - the peak season in demand in the construction sector, including in the form brass fittings and other elements.

"Chinese copper smelters remain limited, so we do not expect much excess supply in the copper market this month," said an analyst at Everbright Futures. "In addition, favorable macroeconomic conditions will help restore market confidence," he said. The analyst added that in China, there is an intensification of investment activities in infrastructure projects, which will increase the demand for copper and, in turn, will lead to an increase in copper prices.

An analyst at Galaxy Futures agreed with this view and said additional measures to boost economic growth in China and the Fed's lagging interest rate potential could support copper prices. In addition, operations at the world's major copper deposits have been disrupted recently, resulting in actual copper shipments that fall short of forecast. "All of this plus higher consumption means copper prices will continue to rise this month and we expect copper to reach $ 6,600 per tonne on the LME," the analyst said.

However, some analysts are more cautious. An analyst at Baocheng Futures expressed concern over China's growth and the slow recovery in copper consumption. "Although China has set itself lofty investment targets this year, whether this plan will materialize remains to be seen, and this will add uncertainty to real copper consumption in the energy sector," the analyst explained. Other analysts are concerned that the continued surge in copper inventories could block the rise in copper prices.