Two Factors Driving Copper Price Higher
Author:
Walter Kurtz
Location: Tokyo
Date: 2013-08-09
While commodity prices remain under pressure (see
discussion), a couple of developments are beginning to provide
support in certain sectors. One example is copper, which is up some
3% on the day.
Reuters: - "The data supports our positive view that the period of destocking in China is over and we forecast an improvement in metals demand and also a stabilisation of growth in China over the coming months," said Eugen Weinberg, analyst at Commerzbank. Data showed China's imports of copper rose 8.1 percent to 410,680 tonnes in July from 379,951 tonnes in the previous month. Obviously many remain skeptical about the sustainability of this rise in prices. Reuters: - Some analysts said although the figures from China were positive, a seasonally slower month for demand could prevent sustained gains for the metal in the short term. Nevertheless this change could signal that at least for now the ongoing price declines in commodities could be coming to an end.
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