Copper futures recovered on Tuesday rising along with commodities and boosted by a decline on inventories.
Copper prices rose today recovering from a decline on Monday as the reports of a stronger inflation drove inversions to commodities. Today, the U.S. Labor Department reported Producer Price index rose 1% in January when the forecast was 0.4 %. The Expenses excluding food and energy increased 4% surpassing a forecast of 0.2% according to the report.
U.S. copper futures rose $3.55 or 0.94 percent to $3.7925 a pound on the Comex division of the New York Mercantile Exchange.
Prices were pulled by a decline on copper stockpiles stored in the London Metal Exchange which dropped 100 metric tons leaving them at 149,125 metric tons today. Yesterday inventories rose sending prices to $3.763 a pound in NYMEX trade.
Analysts predict that copper prices will continue to rise this week due to a greater demand of copper from China, Bloomberg said.
Imports of the red metal from China climbed 7.1 percent in January compared to the previous year. China is the top consumer of copper in the world.
Copper futures in the London Metal Exchange fell $137 or 1.64 percent to $8, 229 a metric ton on Tuesday.