Optimism among the U.S. market is trumping worries about China, the globe's top consumer of the industrial metal and the host of the globe's most rapidly developing economy. But one analyst predicted demand from China is likely to come storming back.
"We had a strong high in January and then China got to the new year and it's a traditional seasonal lull (regarding demand) so things calmed down and copper stayed range bound," analyst Andrey Kryuchenkov with VTB Capital told Reuters. "When China comes back, and they will come back, copper is set to benefit. (Also) the U.S. economy is fairly positive, that has helped equities and is good as far as base metals are concerned."
At 12:35 p.m. on Monday, copper futures gained 0.67 percent, a 2.6 cent lift to $3.904 per pound.
Bloomberg reports China and the U.S. are the globe's top two consumers of the reddish metal, which is sensitive to financial and economic developments due to its myriad uses in construction, industry and manufacturing.
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