Like a number of physical commodity markets, copper prices have posted early gains. Strength in global equities and hopes of better Chinese economic data later this week have been seen by some traders as providing support for copper this morning. In fact, December copper prices at their lows yesterday were down a rather significant 13 cents a pound from their recent highs. Other traders feel that copper might have been partially undermined by a rather large daily build in LME copper stocks of 6,075 tons overnight.
Copper might be finding some additional support from a news story overnight that hinted at a resumption of Chinese stockpiling of copper and aluminum. With residual market uncertainty towards the transition of power in China later this week, many in the market feel that copper prices might find it difficult to be strengthened by Chinese copper demand news until the changeover in power is completed later this week. In the meantime, copper is likely to find carryover support from stronger US equities.
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