-By Ron Styne
Copper prices hit a two month high for the week ending May 16th, impacted by a combination of falling warehouse inventories of raw copper and technical tightness in the markets.
Despite the recent recovery in the LME-(London Metals Exchange), market analysts remain bearish on copper’s long term pricing for the rest of this year. That attitude is being arrived at based on factors such as the Chinese construction market and a surge in supplies. New housing starts in China remain weak.
China still accounts for 35-40% of global copper consumption. In addition there is a large amount of copper accumulated in bonded warehouses used for profitable lending. However demand for copper seems to be improving outside of China.