The copper market has been able to put together a moderate recovery from overnight lows this morning. However, many traders feel that copper and other industrial commodity markets have not found as much benefit as precious metals market from improving macro-economic sentiment. Copper's price action in Asia overnight reflected ongoing weakness as many traders in that region showed little interest in buying physical copper supplies in the face of a potential Euro zone unraveling. Some physical buyers have suggested they might cover their forward needs once it appears that the situation in Europe shows signs of stabilizing. With another overnight rise in LME copper stocks of 3,725 tons, some traders have given more credence to recent reports that Shanghai copper stocks are being shifted towards London, which might be seen as a sign of ongoing slack copper demand in China.
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