Copper prices took a small dip on Tuesday, April 15, but are expected to rebound after the Chinese released an economic report that was better than expected.
While expansion in China was the weakest in six quarters, the 7.4% advance in gross domestic product was slightly higher than what had been previously reported.
A senior fund manager at Astmax Asset Management in Tokyo told Bloomberg News that he believes as a result of the report that investors may rethink their position, and the market may be heading higher.
On Tuesday, copper traded up slightly to $2.988 a pound.
Most commodities brokers are still expecting to see copper demand to rise 2-3%. China is one of the world’s heaviest users of copper, and with the Chinese ecomony struggling in 2014, the demand has been lower than expected. Some of the drop in copper prices this year has been spurred by concerns that slowing Chinese growth could lead to copper oversupply amid big stockpiles.Tagged with tED