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Copper — Positive Week But Fails Recover Previous Losses

April 20, 2012 at 15:53 by Andriy Moraru

Copper is posting its first bullish week in a month as the traders decided to turn to the long side following reports on decreased production and betting on faster economic recovery.

Although the IMF has previously increased its global growth outlook for the next year, the forecasts for the industrial production rate were less positive, adding pressure on metals, including copper. Meanwhile, the copper producing and trading companies fail to report significant decline of demand in China.

Additional positive factor comes from the mines’ output drop reported by Rio Tinto Group, one of the biggest market participants. The shortage of copper lasts for 2 years already, with demand surpassing supply, and is likely to last for another year as the stimulus money is going to boost the supply.

Copper futures for April delivery went up from $3.6410 to $3.7050 per pound as of 15:49 GMT on COMEX today. Last week it went down from $3.7810 to $3.6205 per pound.

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