While March copper initially made an upside breakout during overnight trading, prices have fallen back towards unchanged levels this morning. The copper market received some positive news flow from China overnight, as some Chinese copper users hinted at tighter scrap copper supplies and a potential shift towards the purchase of refined copper supply. Shanghai copper prices were higher overnight and with generally positive US equity market price action could provide support for the market this morning. As with the rest of the metals complex, copper prices may need to see additional positive economic news in order to return towards the overnight highs. The copper market might take some additional direction from Federal Reserve Chairman Bernanke's testimony to Congress later this morning, as some traders feel that event could be the critical development for the US markets today. LME copper stocks overnight were down 2,425 tons, which may provide additional support for copper prices this morning.
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