Copper prices have outperformed the overall metals market as traders have closed short selling in expectation of government intervention to boost growth, but the metal may still be "slightly overvalued," according to a Monday report by Barclays.
Copper, which is used as an electric conduit in many industries, has been affected by some short selling, but market fundamentals have kept prices reasonable close to fair market value, according to Gayle Berry of Barclays Commodities Research. Copper fundamentals are also strong, wrote Berry, with mine and refined production underperforming expectations during 2012. The result could be a deficit of the metal, which could cushion any drops in prices.
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