On the Comex in New York, copper futures for December delivery gained 2.15 cents to $3.915 per pound, while farther-dated March 2011 futures contracts rose 1.8 cents to $3.916 per pound.
"The market has certainly been unnerved by the Chinese tightening fears, though the market also seems very bullish as to copper’s longer-term prospects, with the recent selloff triggering dip-buying interest," Leon Westgate, a Standard Bank analyst in London, told Bloomberg News.
The reason China is so important is its building boom – about a fourth of all copper consumption is in building materials like wiring and water pipes. In fact, China's boiling-hot property market, with entire districts composed of empty buildings bought and sold for speculative purposes, is a large part of the reason that the PBOC is considering raising rates.
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