To curb inflation and cool off its red-hot economy, China is expected to increase the requirement on bank reserves, which it has done three times thus far this year.
"Higher prices hinge on China's demand, which is unclear at the moment," Yang Zhenqiang, an analyst at First Futures, told the news service. "We do see physical buyers emerge every time there's a decline, so that's keeping the market supported."
Shortly prior to 2:15 p.m. on Thursday, copper futures were down 0.23 percent, a 0.01 cent reduction o $4.3045 per pound.
"The global copper market will show a small deficit this year, even if Chinese demand does not grow at all," according to a Wednesday report by Bank of America Merrill Lynch strategist Michael Widmer. "Reduced copper offtake from China will, however, have a knock-on impact on 2012: if the country's demand increases by less than 2.5 percent in 2011, there is scope for an oversupplied market next year."
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