Morgan Stanley forecasts demand from China, which accounts for roughly 40 percent of the globe's supply of the reddish metal, will pick up as the Asian nation's economic state improves. The base metal also climbed as Cyprus pondered its next steps in the aftermath of national leaders rejecting the application of bank deposit taxes in exchange for an emergency bailout tranche approved last weekend.
"Major copper end-demand market indicators, like air-conditioner sales and state-grid-equipment orders, are all improving, while copper inventories at downstream producers remain low," states a Wednesday report penned by analyst Rachel Zhang with Morgan Stanley in Hong Kong, according to Bloomberg. "We believe restocking will be evident in the next couple of months."
At 12:15 p.m. on Wednesday, copper futures rose 1.26 percent, a 0.0415-cent rise to $3.448 per pound.
Reuters reports imports of refined copper are forecast to remain tepid in the Asian nation for the remainder of the year due to large-size inventories of the reddish metal.
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