Reduced inventories of copper demonstrate demand for the industrial metal is increasing, according to Bloomberg.
Enthusiasm among traders of copper is as high now as it was in October, according to the majority of analysts polled by Bloomberg. Of 28 analysts, 16 anticipate the reddish metal will gain in value next week. Since March, global stockpiles of the reddish metal in London, Shanghai and New York have fallen 22 percent since this past March, touching the lowest level since October 2009.
"Reported inventories have been declining very aggressively, and the indication suggests that the market is still tight," analyst Nikos Kavalis with Royal Bank of Scotland Group in London told Bloomberg. "Copper is going to have decent, if unspectacular, growth rates. Supply is still constrained."
At 1:50 p.m. on Friday, copper futures climbed 1.54 percent, a 5.25 cent rise to $3.468 per pound.
Dow Jones Newswires reports Friday's bullish performance marks the fourth consecutive trading session of gains for the reddish metal. The strengthening U.S. economy is projected to continue supporting demand for the industrial metal, which is sensitive to economic data.
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