Copper and silver markets are all set to enter into a highly volatile arena as fresh Japanese demand will conflict with that of already heightened Chinese demand apart from steady improvements in North America and Europe.
Analysts said strong copper and silver demand from China and other emerging countries and improved demand from North America and Europe have all resulted in a very tight global market for these commodities.
Japan, which is trying to recover from the devastated quake, will require huge quantities of copper for residential and commercial purposes apart from its already high demand for manufacturing sector.
Japan is expected to start recovery works soon and reconstruction and refurbishing of damaged plants, buildings and infrastructure should lead to greater commodity consumption, particularly building materials, analysts added.
Japan needs to replace damaged power lines in quake hit regions and also needs transformer replacements for which copper and silver are to be used along aluminum, zinc and nickel. (Commodity Online)
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