Copper to gain in Q2 on expected China demand

AHMEDABAD (Commodity Online) : On Monday morning, LME Copper futures weakened by US $17 a tonne after gaining more than 3 percent gain in earlier session that set the market back on bullish tone. Three percent rise was recorded in previous session due to earthquake in top producer Chile. Copper prices rebounded after straight drop of 10 percent in month of February itself.
Copper is exhibiting a bullish trend thanks to buying sentiment from lower levels after the last week's fall in prices. Japanese industrial output rose for the third straight month in January due to firm demand from fast growing Asian markets.
Three-month Copper on the London Metal Exchange rose by 11.50 USD a tonne to 9,852 USD a tonne, after having touched $9,311, a near one-month low in ongoing month.
The dollar found a steadier footing early in Asia in beginning of the week and inched to a record low versus the Swiss franc as risk appetite made a cautious comeback, but the mood remained precautious given ongoing tensions in Libya and fears of infectivity.
Confidence among international consumers increased more than forecast in month on February to the highest level for the year 2011. Still, Copper also dropped more than 8 percent in February after touching all time high in current year. Growing violence in Libya drove Oil prices to 29 months high in last week which also affect metals price to stay in green territory.
It is expected that Copper futures may rise in second quarter due to expectations that China demand will pick up following construction activity that will increase after the long winter.

(Source: http://www.commodityonline.com/news/Copper-to-gain-in-Q2-on-expected-China-demand-36828-3-1.html)