http://www.wsj.com/articles/copper-prices-rebound-1421289541
By
BIMAN MUKHERJI
Updated Jan. 15, 2015 12:25 a.m. ET
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Traders took advantage of Wednesday’s price fall to slowly buy back into the market, though the three-month future remained below the key level of $6,000 a metric ton on the London Metal Exchange. Copper was up 0.5% at $5,590 a ton at midday in Asia and was
tracking gains in crude oil overnight.
Copper is considered a key barometer of the world economy’s health because the metal is used in a broad swath of industries. Price moves are therefore closely watched. The price fall on Wednesday came after the World Bank cited concerns about a “disorderly slowdown” in China, a key buyer of the metal. The World Bank also
cut its 2015 outlook for global growth.
“I think the selloff in copper is overdone. We do expect a steady recovery in the U.S. economy and I would say the demand for copper should increase,” said Avtar Sandu, Singapore-based senior commodities manager at Phillip Futures. “Going forward, I am optimistic on copper.”
Though the plunge in copper Wednesday spooked financial markets, most analysts said investors are misreading the metal’s outlook and believe the future is promising.
