Like a number of other physical commodity markets, copper prices have come under pressure during early Thursday trading. News of an increase in Zambian copper production overnight and a rise in LME copper stocks have been seen as negative factors for the market from the supply side of the equation. Some traders feel that the copper market may have also been pressured by the lack of re-stocking by the Chinese following their extended holiday, but other traders feel it is possible that weakness in US equities and a slight downshift of US inflationary expectations may prove to be key negative factors for the market. A falloff in US mortgage applications along a jump in US foreclosures were also developments that are widely seen as having a negative impact on US copper demand from the housing market.
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