Stockpiles of copper will slump in the third quarter when demand for copper outpaces supply, according to an administrator at an investment house.
Bloomberg reports China, as the world's biggest consumer of the metal, is expected to resume purchases during July, August and September. This past February, refined copper imports into China dropped to their lowest amounts in two years, which was 158,185 tons.
"We think the market is in such a large deficit this year that sometime in the third quarter, copper stocks are going to hit the lowest level they've ever been," according to Barclays Capital managing director Kevin Norrish.
Just prior to noon, copper futures were up 2.34 percent, a 0.101 cent climb to $4.414 per troy ounce.
Norrish commented on how market conditions and activity in China makes Barclays confident about its opinion.
"We've not changed our views," Norrish said. "We are still seeing an incredibly tight market. I think what’s going on in China is that there has been a little bit of a pullback because prices are so high."
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