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Copper Recovers as Fundamentals Turn Positive

May 17, 2013 at 20:37 by Vladimir Vyun

Fundamentals became positive for copper by the end of the week, resulting in gains of the industrial metal. Earlier this week, the metal was falling on poor macroeconomic data.

Copper inventories in China, the biggest consumer in the world, declined. Stockpiles monitored by the Shanghai Futures Exchange dropped to 190,330 metric tons, the lowest level since October. Falling reserves are bullish for the metal.

Positive news from the United States improved the market sentiment, adding to the strength of copper. The University of Michigan Sentiment Index advanced from 76.4 in April to 83.7 in May, more than was predicted. The Conference Board Leading Index rose 0.6 percent in April. Data from the USA was rather bad for the most part of the week and today’s reports were a nice relief for traders.

July futures for delivery of copper advanced $0.018 (0.55 percent) to $3.3125 per pound on COMEX today.

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