.METALS-Copper ends firm after absorbing China rate hike Tue Feb 8, 2011 7:56pm GMT Print | Single Page[-] Text [+] * Copper brushes off China interest rate rise * Copper canceled warrant ratio falls to 10-mth low * Coming up: China's return from Lunar holiday Wednesday By Chris Kelly and Melanie Burton NEW YORK/LONDON, Feb 8 (Reuters) -
Copper bounced to a slightly firmer finish on Tuesday, absorbing an initial hit from China's surprise interest rate hike which failed to dent the industrial metal's robust demand prospects for this year. China's central bank has raised rates twice in the last six weeks in an effort to bring high inflation under control in the world's top consumer of base metals. [ID:nTOE706030] The move caused a knee-jerk retreat in copper prices, which have rallied to successive record highs since the start of February as investors priced in a more robust demand outlook against a backdrop of supply constraints. But when the dust settled, buyers bought back in and boosted copper prices back above the $10,000 level -- endorsing the market's anticipation of a stronger Chinese presence this year. "I am just not convinced personally that the tightening interest rate environment is sufficient enough to weaken the domestic demand," said Justin Lennon, analyst at Mitsui Bussan Commodities (U.S.A.)
AVB Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
