Copper futures snapped a four-session losing streak on strong economic data out of China, raising expectations that the world’s largest metals consumer will boost imports.
“You look at low [Chinese] inventory levels and today’s steady industrial demand, chances are the import numbers into China in the future might be healthier,” said Bart Melek, head of commodity strategy at TD Securities. “I suspect the market is seeing a bit more physical buying in China.”
“By July we will begin to see a steady increase in copper import levels,” says Barclays Capital base-metals analyst Nicholas Snowdon.
“Even that hand-to-mouth consumption has been enough to drastically draw down domestic stocks,” Barclays Capital’s Mr. Snowdon said.