LME 3-month copper may rally to $8,000/ton in 2Q if it breaks convincingly above $7,400, says Fred Gu, trading manager at Shanghai-based Baiyin Resources. LME 3-month copper down $65 at $7,350 after hitting 4-month high overnight. Adds, for convincing break, copper needs to close above $7,400 2 or 3 times. Notes copper rally to be driven by fund short-covering on perception of strong Chinese copper demand in 1Q. However, China copper imports likely to drop in 2Q, which should eventually force funds to take more bearish outlook in 1-2 months.
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