After an initial rally up to a new all-time high, March copper prices have since fallen back toward the 460.00 level. Many traders feel that the copper market appears to feel that Chinese inflation readings overnight were under control and that the Chinese central bank would not have to move towards dampening inflation during the near term. While UK inflation readings were fairly strong, some Bank of England officials were appearing to discount an inflation threat while debating the sustainability of high inflation levels. Those comments were widely seen as giving copper and other industrial commodity markets some hope that inflation might be allowed to develop further. Copper prices may also be receiving support from news that General Motors was planning to add 20 new and upgraded models in the Chinese auto market, as some traders feel that would indicate ongoing industrial demand for copper inside China. A private survey of German economic sentiment during February was 15.7, lower than expectations and may point to weaker copper demand from German industry over the near-term. LME Copper Stocks were 402,425 tons, up 650 tons.
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