Copper sector set to shine on growing demand

The Street reported that copper prices may have stalled but a look at supply versus demand makes the industrial metal increasingly attractive.
Even though copper is down from its all time high of USD 4.62 per pound, analyst reports continue to project that robust demand from China will help boost prices toward the end of 2011.
Analysts said that on the supply side copper is in the midst of a worldwide production slump. If you believe in construction and automobile growth in China and Japan, or even a housing rebound in the US then you aren't far off from believing in the strength of the copper market. The base metal is used in wiring, roofing and industrial machinery and often acts as a bellwether for economic health.
Mr George Gero metals strategist at RBC Capital said that on average, one automobile uses about 40 pounds of copper and one house averages about 400 pounds. One automobile uses about 40 pounds of copper and one house averages about 400 pounds.
Mr Eric Zuccarelli independent trader said that since copper trends are tied to the fundamentals, the metal tends to be less volatile on a daily basis. Copper is holding up well even in the midst of a perceived economic slowdown.

Source: from the Street