With copper futures at their lowest price in one year, speculation is mounting among traders, analysts and other industry insiders regarding intentions of the globe's top consumer to increase its inventory, according to Bloomberg.
The industrial metal scraped its lowest price since August 2010 this past Monday amid the commodities complex losing value due to slowing economic systems reducing demand. Then, on Tuesday, the top official of Codelco, the globe's biggest producer of the reddish metal, suggested China capitalize on the low prices and build its supplies.
"The market has overshot, leaving prices more negative than the risks to growth imply," commodities research head Nic Brown with Natixis Commodity Markets in London told Bloomberg. "It's likely to be choppy for a while, but looking back this will probably be seen as a good buying opportunity."
At 3:26 p.m. on Friday, copper futures gained 1.79 percent, a 5.8 cent lift to $3.3045 per pound.
Dow Jones Newswires reports copper uses include cellphones, laptop computers, cars and renovations to domestic residences and news about the U.S. economy adding 103,000 additional jobs last month is likely to drive demand for the reddish metal.
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