Curious Copper: Prices Up Despite Expectations of Oversupply

Copper prices are showing quite a bit of lift, hitting a 5-month high recently despite expectations that increases in production from new mines and decreases in demand from China would lead to oversupply. Why? An article on Metal Miner points to continuing strength in China's manufacturing sector combined with delays in bringing the new production online.

Meanwhile the investment market is reported to be looking at base metals in general with more enthusiasm than we saw last year. The belief is investment funds are allocating more to commodities than they had been as prices have risen this year and base metals are seen as one way of taking a bet on continued growth in China.

So Much For Copper’s ‘Oversupply,’ Canceled Orders Are Leading A Comeback