MARKET TALK: Chinese Copper Demand Up, But Imports Rise

Chinese copper demand is rising as fabricators buy metal for production after the Lunar New Year holidays, but this is being partially offset by ready availability in the cash market from increasing imports and more deliveries by smelters there, a broker says. London Metal Exchange copper stocks have doubled in the past 12 months although there's been a decline in Shanghai Futures Exchange warehouses, he notes. "Whether local Chinese smelters can meet production needs or not remains the key to future price direction," he adds. LME copper trades at $5,601 a metric ton, up from Friday's close of $5,580/ton.