Tuesday, April 14, 2009

Copper price surges; what does it mean?

Copper hit $2.1255 in New York yesterday, its highest price since October, amid reports that Chinese demand is growing.

Copper stockpiles in warehouses dropped by about 1%. One report says China imported about 300,000 tons in March with about 25% of that going to the country's strategic stockpile.

So, that raises the question - is Chinese demand due to economic growth or to buying up large inventories while the price is [relatively] low? [photo credit USGS]

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