The London metal exchange (LME) copper futures were little changed on Wednesday, after China released data showing the economy is still in trouble, speculation that China could support for industrial metals industry. After the Treasury said it would decrease the export tariffs for goods such as pig iron, billet.
Chinas trade performance is still weak in November, for the fourth quarter the economy stabilises hope in the clouds, and bring more pain to its main trading partners, even if Chinas copper imports jumped 10%.
"I dont think it reflects consumer demand growth. Although the automotive and real estate industry in sporadic recovery, but not enough to drive prices rebound. We need to wait for a period of time," Hong Kong brokers Argonaut Securities analyst Helen Lau said.
. (0700 GMT), the London copper quote $4592.50 per ton, up 0.1%, rose 0.7% on Tuesday.
Shanghai copper futures hold 0.5%, to 35010 yuan per ton.
Lau said, adding that the rise of Chinas copper imports in November, from the end of the metal financing activity increases, and the difference between local and global market prices also encourage imports.
Goldman sachs predicts the next three months, six months and 12 months of copper respectively, $4800, $4800 and $4800 per ton, leans to the downside risk.
Chinas finance ministry said on Wednesday that since January 1, 2016, of the import and export tariffs will be some adjustments, including moderately expand consumer goods scope of tax reduction, decrease the export tariffs for goods such as pig iron, billet.
"It isnt there a suggesting that China will export more? Sit tight for a trade war." A metal industry executives said in Asia.
Analysts believe that in addition to cut some aluminum products of export tariffs, the excess supply is introduced into the global market, China will take measures to speed up industry consolidation, or restrict the sale of petroleum coke and other key feeding.
Traders said the short-covering, Shanghai aluminum futures rose nearly 2%, London aluminum futures rose nearly 1%.
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