Market and product

BEIJING (Commodity Online): The Chinese Copper consumption rose by 7.2% in October Month-on-Month to 295,341 tonnes from the 275, 499 tonnes in September, data from the customs department shows. China is a major consumer of copper and accounts for about 40% of world copper consumption.

Profitable arbitrage opportunity between the London Metal Exchange (LME) and Shanghai provided incentive for the buyers.

Buyers have also been attracted by low prices in copper. LME Copper has fallen from its highs of $10,000/tonne in early part of the year to trade at around $7500/tonne in November, a 25% decline. This has also incentivised the buyer to restock their inventories.

Copper is expected to be supported by strong Chinese consumption. Goldman Sachs forecasts prices to hit $9500